Considerations

The National Quotation Bureau was founded in 1913 as a private corporation that published stock quotes in a newspaper on pink or yellow sheets, and most investors still label unlisted companies that offer shares as pink sheet companies. The National Quotation Bureau later changed its name to the OTC Markets Group, Inc. and still provides quotation and trading platforms as of April 2011.

Risks

Most pink sheet stocks have been delisted or unlisted due to serious insolvency, recent bankruptcy, thin volume or small market capitalization. Many OTC companies do not file reports with the Securities and Exchange Commission (SEC), meaning that they do not offer independently audited financial statements to investors. For this reason, investors cannot usually find reliable and unbiased information about the finances of a pink sheet company.

Penny Stocks

While penny stocks need not necessarily be pink sheet stocks, traders may use OTC stocks listed at $2 or under to make speculative bets on the future of a company. Some speculators trade penny stocks due to the possibility of a 100 percent increase or more in the price of a stock. Dishonest speculators may pump up the price of a pink sheet stock illegally via newsletters or rumors in order to dump the stock after later buyers increase the price of the stock, known as a pump-and-dump scheme.

Benefits

References

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Pink sheet stocks are companies listed by the National Quotation Bureau but not necessarily registered with the Securities and Exchange Commission. These.

Prices for stocks which are traded in the over-the-counter (OTC) markets are published as so-called pink sheets by the National Quotation Bureau.

The Pink Sheets Exchange is an over-the-counter securities exchange that lists securities that are not qualified to be listed on a traditional.

The .PK after a stock symbol indicates the stock is a pink sheet stock. The term pink sheets is a leftover from.

They are also called bulletin board stocks or pink sheet stocks. The term penny stock refers to the fact that these stocks.

Pink Sheets is also a reliable source on penny stock information that is easy to access. Both sites can also provide vital.

The .PK after a stock symbol indicates the stock is a pink sheet stock. The term pink sheets is a leftover from.

OTC can be bonds, derivatives, penny and pink sheet stocks. While OTC stock can be illiquid, it may still have a market.