FINRA Form 211 and Getting Your Trading

To obtain your trading, regardless of how you became public, you have to get the stock quoted on the Pink Sheets, OTCBB markets or over a stock exchange. For small companies this means getting the trading around the Pink Sheets or OTCBB.

To have a trading market you will need one or more market makers. Forex trading maker should be a broker-dealer who is a member of FINRA and registered with all the SEC.

To start trading, one market maker must file a Form 211 using the Financial Industry Regulatory Authority, FINRA, and create a market in your stock.

A FINRA rule says that market makers are not meant to charge any fee for filing an application 211. We polled every one of the market makers from Pink Sheets this past year and all of them but one wanted a $10,000 "due diligence" fee or some such to file the Form 211. Due to the expense and time involved, and also the likelihood that filing for a dishonest clients are a bad reflection in it, we could hardly blame them for thinking of doing homework. Besides that, we believe an industry maker needs to be ready to file a questionnaire 211 whether it believed that substantial business would develop in trading the stock. Market makers generate income mainly on volume.

FINRA processes the proper execution 211 as well as there be adequate non-affiliated shareholders with free trading stock to make trading inside the stock possible. They don't want this stock being concentrated using some hands.

You will need to document in more detail how this stock was offered and sold and prove that this is at full compliance with the securities laws and rules of the SEC and also the states. This stock has to bought inside a real transaction for investment rather than just gifted towards the shareholders.

You will have to prove that the company is not just a shell as defined in Rule 144. You'll have to reveal that you are in a genuine business with assets and a minimum of be described as a development stage company.

You will need to create a shareholder list from the transfer agent clearly showing free trading stock and an opinion of your securities lawyer that stock is certainly free trading stock and not restricted FINRA may stop the proper execution 211 if you have any experience of unsavory characters or if there's anything else they don't agree to.

If FINRA doesn't approve your Form 211, there is a to appeal to the SEC. We might expect that these appeal is likely to be unsuccessful.

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