Stringent Sarbanes-Oxley (Sox) requirements will be the
biggest challenge to the success of Nasdaqs recently
announced BX venture market.
The new listing venue, approved this month by the Securities
and Exchange Commission (SEC) is intended to bridge the gap
between the national exchanges and over-the-counter (OTC)
markets in a manner similar to Torontos TSX Venture
Its hoped to attract growing companies that dont
meet the quantitative listing requirements for Nasdaq and the
NYSE. But costly and time-consuming compliance and corporate
governance requirements imposed on public companies by Sox
could deter these companies from listing on the new market.
Listed companies are still going to have all of the
costs associated with being a public company and complying with
many aspects of Sarbanes-Oxley, but...