TheDirectory.com, Inc. (SEEK)

[Billy Bob1]

The reason for DTC is that It has become a big concern for Over-the-Counter (OTC) issuers, which includes companies that trade on the pink sheets, OTCQB and OTCBB, to obtain and maintain DTC eligibility for their shareholders.

First and foremost, DTC eligible shares are traded electronically which eliminates the need for brokers to produce the physical stock certificate in order to settle the trade. This allows the shares to trade quickly, with less expense and can help increase an Issuer’s trading volume (float) in the secondary market.

In fact, many brokers will not trade shares that are not DTC eligible and the cost and delayed time-factor is prohibitive. To attract investors, a pre-requisite is for an Issuers shares to be DTC eligible.