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"The outlook for small growth stocks is good, given that valuations are attractive," Mr. Ziehl said from his Manhattan office.
That appeared to violate the Frankfurt Borse's rules governing companies listed on its Neuer Markt, an exchange for small growth stocks.
"We're at a point in time that's exceptionally favorable for small growth stocks," Mr. Oberweis said from his office in North Aurora, Ill.
Thus, the OTC market illustrates the trade-off that securities regulators face between ensuring investor protection and creating a viable market for small growth firms.
The New York Stock Exchange has added NYSE MKT (the former American Stock Exchange) for small growth companies to compete with Nasdaq for IPO listings.
In Germany, regulators and the nation's state-owned banks fear that Frankfurt will lose control over the market for small growth companies, which has been a huge success here in the last three years.
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Under the deal, the market for smaller growth stocks is to be based in Frankfurt while London assumes responsibility for blue-chip stocks.
As shown in Figure 1a, at low H2 flow rate (10 sccm), no nucleation occurs for smaller growth durations, e.g., t < 5 min.
The fund gained 55.6percentt a year, annualized, for the three years through March 31, compared with 35.2percentt for its category of small growth funds, according to Morningstar Inc.
This compares with a 10.7percentt load-adjusted return for its small growth group and 3.9percentt for the Standard & Poor's 500-stock index, according to Morningstar Inc.
The company said loss of advertising was responsible for the small growth in earnings.
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