The United States is recognized as the largest securities market in the world. If you are a smaller company, the U.S. market is certainly the place to be. The NASDAQ is considered to be the premier marketplace for growing public companies. For smaller or more early stage stocks, the Over-The-Counter Bulletin Board system has quickly grown into a dynamic marketplace which allows issuers to connect with investors and provides a platform for raising money to fund their growth. In 2000, the OTCBB average daily volume was 458 million shares and average daily dollar volume was almost $400 million. If you are a smaller company, doesn't it make sense to take advantage of these booming markets?

Once a company is fully reporting and compliant with both Federal and State securities laws, a company can take advantage of the vast U.S. securities market. Advantages to becoming fully reporting include:

Your shares trading in the U.S. Market
Under the new rules, any stock trading on a US stock exchange or Over-The-Counter on the OTC Bulletin Board must be fully reporting with the SEC. This requirement applies to all companies even if they are already listed and trading in their home country.

Access to US Brokers and Investors
Under State "Blue Sky" laws, brokers are not allowed to recommend and sell any stock to a client unless the security in question is registered in that state. Many brokers will not deal in any stock that is not fully reporting and trading in the US market. This is especially true of many "discount" brokers popular with individual investors.

Additionally, investors will have easier access to your stock's quotes and news. US investors will appreciate the inclusion of your company news and regulatory filings which will be available on hundreds of websites that carry information on US traded stocks and financial markets.

Raise your visibility with Institutional Investors
Many US based institutional investors only invest in stocks that trade in the US. By becoming fully reporting, your company not only fulfills this provision, but your filings with the SEC tends to give your company a higher level of authenticity in the eyes of all investors.

Ability to raise funds in the United States
By becoming fully reporting, a company is able to sell shares in the U.S. and raise money either through Private Placements or public offerings.

Ability to use your shares for acquisitions as well as employee purchase or option plans
If your shares are fully registered, it is easier to make acquisitions in the US as partners are more likely to accept shares that already trade in the US. Additionally, by being fully reporting, you can establish stock purchase plans for your US employees.

With all the benefits a U.S. registration brings, it is almost vital for a public company to become fully registered. We at A. B. Korelin can help you with the task and lead you through the regulatory process from beginning to end.