The Toronto Stock Exchange (TSX) and the Over-The-Counter Markets (OTC) are two popular stock exchanges for publicly-traded companies. Both exchanges offer a wide range of benefits to companies, and many businesses find that dual listing their company on both exchanges provides the most comprehensive access to capital markets. In this article, we will explain the advantages of dual listing on the TSX and OTC and how to go about doing so.
The TSX is the largest stock exchange in Canada and is home to many of the country’s largest companies. It offers a number of advantages to companies, including reduced compliance costs and improved liquidity. The TSX is also well-known and trusted by investors, making it an attractive option for many companies.
The OTC Markets, meanwhile, is a global electronic marketplace that trades stocks, bonds, and other securities. The OTC is a great option for companies looking to access U.S. and international capital markets, as it is the most widely used and highly visible OTC market. The OTC is also less expensive than the TSX, making it a cost-effective choice for many businesses.
Dual listing on the TSX and OTC Markets can provide a number of advantages for companies. By listing on both exchanges, companies can gain access to a larger pool of potential investors and increase their overall liquidity. Additionally, dual listing allows companies to benefit from the reduced compliance costs of the OTC, while also leveraging the trust and reputation of the TSX.
To dual list on the TSX and OTC Markets, companies must first meet the listing requirements of both exchanges. Companies must also submit a listing application to the TSX and comply with all of the exchange’s listing requirements. The OTC Markets, meanwhile, requires companies to submit a Form 211 to the Financial Industry Regulatory Authority (FINRA).
Once the listing requirements have been met and the application process has been completed, companies will need to create a market maker to facilitate their dual listing. A market maker is an individual or institution that provides continuous bids and offers for a company’s stock. The market maker will also ensure that the company’s stock is correctly priced and that the stock is actively traded.
By dual listing their company on the TSX and OTC Markets, businesses can gain access to a larger pool of investors and can benefit from the reduced compliance costs and improved liquidity of the OTC. Although there are a number of steps involved in dual listing, the process can be relatively straightforward for companies that meet the listing requirements of both exchanges and create a market maker.
