Freedom Holding Corp (FRHC)

[shanak10]

OTCQX Tiers
The reason large and prestigious companies list on the OTCQX rather than on a major exchange, such as the NYSE, is mainly to avoid the high costs associated with listing shares. Another reason is to bypass the expenses incurred in meeting the stringent ongoing disclosure and legal requirements that come with maintaining their listings. In contrast, the application fee for international and U.S. companies that meet the OTCQX requirements is much smaller.

To be eligible for a listing on the OTCQX U.S. Premier Tier a U.S. company must meet specific and additional requirements. Requirements include a minimum bid price of $1 for the preceding 90 business days and meeting the financial criteria for continued listing on the Nasdaq Capital Market.

The Premier Tier is designed to identify large, high-quality issuers that would qualify to list on a national stock exchange. The comparable OTCQX International Premier tier is for foreign companies that meet specific qualifications of the NYSE’s worldwide standards.

While stocks trading on the OTCQX have many of the same protections as more established, larger stocks, they are still considered to be speculative. There is also no guarantee that any item trading here will be of higher quality than stocks trading on other over-the-counter tiers, or even another OTC marketplace. As such, traders would be well served to implement robust due diligence before committing their capital.