Small Fry Regional Exchanges
Small Fry Regional Exchanges
Regional exchanges conduct their own proprietary business as well business for their bigger
counterparts. The requirements for a company to have its stock listed on the two major
exchanges are often prohibitive for many smaller companies. However, these companies can
usually meet the requirements of the smaller exchanges and for that reason are traded there.
For example, in the same burger joint scenario let's say you are a lobster fisherman. You
know that the national burger joint has no interest in your new product, the Lobster Burger. In
Maine, however, the Lobster Burger is a big hit. Rather than attempting to sell your Lobster
Burger to Burger Joint headquarters for distribution in all its locations, you take your Lobster
Burger idea directly to Burger Joint headquarters for the State of Maine. They agree to
distribute, or sell, your Lobster Burger exclusively through Maine. In the same way, a regional
exchange offers access to markets where many smaller companies can remain competitive.
