But unfortunately the big companies have all the influence in Washington, with politicians of both parties dependent on them for campaign contributions.

With banks refusing to lend money to small companies and the Small Business administration being a joke, the only way for small companies to gain access to the capital markets is to go public.

So the pink sheets have become a viable option for many small companies to go public, Pink Sheet listed companies are not required to have audited financial statement. They must disclose financial information that is accurate but it can be prepare by the company’s accountants.

These securities are traded on an unsolicited basis, which means that the NASD has not cleared a market maker to enter a quote in the security pursuant to SEC Rule 15c211. Instead a broker is relying on an exemption to the rule in order to display a quotation representing customer order.

The broker must ascertain that the issuer has made adequate current information available on the Pink Sheet website. The disclosure policy has been a good attempt at creating transparency of basic information that investors trading in public market deserve.

But the pink sheets are not stopping here they are planning on having different tiers. The pink Sheet is planning to charge companies a flat fee for corporations to get a templates for financial information, and will be able to use the website to post media releases and hold question and answer sessions as well other service. This will help raise the companies into one of the new tier.

The top tier will be Premier QX which will be compose of companies large enough to be listed on a major exchange, with audited financial statements, annual shareholders meetings and share price of at least $1.

A second tier will be made up of companies will be smaller issuers with audited financial reports. The final tier will be made up of small companies with information prepared by person with sufficient financial skills and complying with guidelines that the Pink Sheets will be mailing to issuers.