The Case For Taking Your Company Public On The Pink Sheets
By Joseph Quinones

Over the course of history there have been events and legislation that has transformed the financial markets, our economy and the way we conduct business , such as the legislation that form the Securities and Exchange Commission, the Internet has also has transformed the way we do business and communicate.

Sarbanes-Oxley falls into that categories, this piece of legislation named after Senator Paul Sarbanes (D) MD and Representative Michael Oxley ( R) Ohio was passed in response to the Enron and Worldcom scandal.

When legislators in Washington are confronted by a problem they also rush to come up with some type of legislation to give the appearance that they are doing something about the problem, and we the electorate have become accustomed to having Washington solve all of our problems.

But Washington’s solution to one problem is the beginning of another one and often times a bigger one.

Sarbanes-Oxley is making it extremely expensive for small and mid-size company to be able to afford the cost of an audits, the requirement of Sarbanes-Oxley has almost double the cost audits.

And compliance with other requirement of Sarbanes-Oxley is also eating away at the bottom line, one company that chose to leave the American exchange for the pink sheets is Ziegler Cos. 103 year old investment banking firm based in Milwaukee.

John J. Mulherin CEO of Ziegler Cos. Says Sarbanes-Oxley rules would have cost the company 10-15% of its bottom line in the first year alone.

Many small and mid-size companies would prefer to put these resources in to expansion and product development, and that is why many are choosing to go public in the pink sheets.

The small companies our the backbone of our nation not the big bloated Fortune 500 companies which have lost over 20 million jobs over the last 10 years, while small companies have created 15 million new jobs over the same time period.