Which requirement is necessary for a security to be listed on the OTC Pink market?

Prepare for the FINRA Investment Banking Representative Exam with flashcards and multiple-choice questions, each offering hints and explanations. Boost your confidence for success!

For a security to be listed on the OTC Pink market, the requirement that a company must have at least one market maker is essential. The OTC Pink market, known for being less regulated than other exchanges, allows companies to be traded without stringent requirements that are present on formal exchanges like the NYSE or NASDAQ. Specifically, the presence of a market maker is crucial because they quote prices in the security, facilitating trading by providing liquidity. This is fundamentally different from an exchange requiring minimum price thresholds, SEC registration, or annual financial audits, which are not prerequisites for OTC Pink listings. Therefore, the ability for a security to trade on the OTC Pink market hinges primarily on having at least one market maker acting as a facilitator for trades.

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