The Over-The-Counter (OTC) Capital Market in the United States provides an alternative trading platform for companies that are not listed on major exchanges like NASDAQ or the NYSE. It allows smaller, international, and emerging companies to raise capital, gain visibility, and build investor confidence while operating under flexible reporting and compliance standards.

The OTC market is operated by the OTC Markets Group, which categorizes companies into three main tiers based on their financial performance, level of transparency, and regulatory compliance. Each tier offers different levels of investor trust and exposure, providing companies a path to grow and eventually move to larger exchanges if desired.

OTCQX is the premier tier of the OTC Markets for financially strong, well-established companies that meet the highest standards of disclosure, transparency, and corporate governance, offering enhanced credibility and access to U.S. investors.

• Designed for well-established and financially strong companies.
• Requires the highest level of disclosure, transparency, and corporate governance.
• Companies must meet strict financial standards and follow U.S. securities laws.
• Often used by international firms seeking credibility and broader investor access in the U.S. market.

No penny stocks or shell companies are allowed on this tier.

Example: Large foreign companies or U.S. firms with proven track records that aim to enhance investor confidence.

This market is targeted at developing and growth-stage companies that maintain a minimum share price of $0.01, comply with basic governance standards, and provide regular financial reporting. It serves as a stepping stone toward higher OTC tiers or national exchanges, attracting investors seeking emerging opportunities with regulated transparency.

• Targeted at developing and growth-stage companies.

• Must maintain a minimum share price of $0.01 and comply with basic governance standards.

• Requires regular financial reporting to the SEC or OTC Markets.

• Serves as a stepping stone for companies progressing toward higher tiers or national exchange listings.

• Attracts investors looking for emerging opportunities with regulated transparency.

Example: Expanding tech startups or mid-sized firms seeking increased liquidity and U.S. investor attention.

The most flexible and lightly regulated OTC tier, ideal for startups, foreign firms, or distressed companies. It requires minimal disclosure, has no SEC filing obligations, and provides an entry point for high-growth companies with limited resources, covering a wide range of securities from legitimate small businesses to speculative investments.

• The most flexible and least regulated tier of the OTC system.
• Suitable for startups, distressed firms, or foreign companies not ready for higher compliance levels.
• Offers minimal disclosure requirements and no obligation to file with the SEC.
• Provides an entry point for companies with limited resources but high growth potential.
• Includes a wide range of securities, from legitimate small businesses to speculative investments.

Example: Early-stage or restructuring companies exploring market access with limited reporting capacity.

OTCQX – The Premier Tier
The highest OTC market tier for well-established, financially strong companies that meet strict disclosure, governance, and compliance standards, offering maximum credibility to investors.

OTCQB – The Venture Market
Designed for early-stage and developing companies that are growing and building transparency, with lower financial requirements but mandatory reporting and compliance.

OTCID – The Open Market
An entry-level public market for companies with minimal reporting requirements, often used by early-stage, international, or transitioning firms.