You are the sole shareholder of a small corporation. Presently, you wish to diversify your holdings and thus want to sell a portion of your shares but do not want to incur the costs associated with SEC filings. Which one of the following markets, if any, might be conducive to this sale?

Question

Quizplus · Accepted Answer

The Pink Sheets market does not have SEC reporting requirements and is known for trading penny stocks and small cap companies. Therefore, selling a portion of your shares without incurring SEC filing costs may be possible on the Pink Sheets market. The NYSE and NASDAQ require companies to meet specific listing requirements and comply with SEC reporting regulations, making them less conducive to selling a portion of shares without incurring SEC filing costs. The OTCBB is also subject to SEC reporting requirements and is a market for over-the-counter trading of securities.

You Are the Sole Shareholder of a Small Corporation