Compliance costs for the non-reporting stocks on pinksheets would be zero compared a possible $500,000 on the NYSE, although I'm sure CGR was not paying anywhere near $500,000, considering their market cap. Additionally, they would have been thrown off the exchange anyway, for not meeting the minimum share price. The cost of trading on the regular non-reporting pinksheets would be nothing, and should they choose the OTCQX which provides a verified form of transparency, the costs would likely be in the $15,000 range annually. Once the price of gold recovers, I suspect few investors will really care where CGR is trading as long as they have some reasonable expectation the company is turning a profit. If by some illogical twist of markets, gold does not recover, CGR and many other gold miners are probably toast.
Excerpts from Investopedia
Whether a stock trades on the Nasdaq or the NYSE is not necessarily a critical factor for investors when they are deciding on stocks to invest in. However, because both exchanges are perceived differently, the decision to list on a particular exchange is an important one for many companies. A company's decision to list on a particular exchange is also affected by the listing costs and requirements set by each individual exchange. The entry fee a company can expect to pay on the NYSE is up to $250,000 while on the Nasdaq, it is only $50,000 to $75,000. Yearly listing fees are also a big factor: on the NYSE, they based on the number of shares of a listed security, and are capped at $500,000, while the Nasdaq fees come in at around $27,500. So we can understand why the growth-type stocks (companies with less initial capital) would be found on the Nasdaq exchange.
A daily publication compiled by the National Quotation Bureau with bid and ask prices of over-the-counter (OTC) stocks, including the market makers who trade them. Unlike companies on a stock exchange, companies quoted on the pink sheets system do not need to meet minimum requirements or file with the SEC. Pink sheets also refers to OTC trading.
The top tier of the three marketplaces for trading over-the-counter stocks provided and operated by the OTC Markets Group. The OTCQX forum offers the best marketplace of these three tiers for companies that fulfill qualification criteria. To qualify for an OTCQX listing, a company must meet high financial standards, be current in its disclosure and be sponsored by a professional third-party advisor.
I am only expressing my personal opinions or repeating public information from SEC filings or media outlets-which may or may not be correct. Do your own investigating before investing!
AI
