Series 24 Question of the Week

A firm wishing to quote an issue in the OTCBB may piggyback another dealer’s continuous quote in the pink sheets if:

I. The security has a bid price of at least $5

II. The issuer is not in bankruptcy

III. The security is issued by a domestic issuer

IV. The issuer current with its reporting

A. I and II

B. II and IV

C. II, III and IV

D. I, II, III, IV

Correct Answer(s):

C. II, III and IV

Explanation:

All of the conditions listed must be met for a firm to piggyback a pink sheet quote except there is no requirement that the issue have bid of at least $5.