SEC Approves NASD Bulletin-Board Rule.

Traders, February, 1999

The Securities and Exchange Commission has approved a new OTC Bulletin Board eligibility rule that will require all bulletin-board-listed companies to provide more information to regulators.

The rule, proposed by the National Association of Securities Dealers, allows only those companies that report their current financial information to SEC, banking or insurance regulators to be quoted on the OTC Bulletin Board, which is run by the NASD.

Under the new rule, a U.S. company that does not file periodic financial reports will be eliminated from the bulletin board after a 12-month phase-in period, which starts in July. By June of next year, the rule will apply to all companies on the bulletin board.

There are roughly 6,500 securities quoted on...

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