Delisting Increases

The Jumpstart Our Business Startup (JOBS) Act is allowing companies to deregister from stock markets. Previously, a company with over 500 shareholders was required to be listed, which also meant filing financial reports with the SEC. The JOBS Act allows companies with as many as 2,000 shareholders to delist, and allows the company to avoid SEC reporting requirements. The Coastal Banking Company recently delisted its securities, saving $150,000 to $200,000 per year. And Harleysville Savings Financial saved 6 cents per share by delisting. While going dark used to have negative connotations, OTC Markets is trying to make unregistered securities more respectable. OTC Markets has five tiers of stocks based on the information made available by the company. OTC Markets combines the company's financial results with the stock price and trading information in an effort to increase transparency.