Buying - Pink Sheet Stocks

The OTC Markets Group organizes securities into tiers based on the quality and frequency of information the company discloses to the public .

Understanding Pink Sheet Stocks: A Guide for Investors "Pink Sheets" (now formally the ) refer to a speculative tier of the over-the-counter (OTC) market where securities trade directly between broker-dealers rather than on centralized exchanges like the NYSE or Nasdaq . Historically named for the pink paper on which quotes were printed, this market is home to diverse companies, ranging from distressed firms to major international brands . 1. Market Structure and Tiers

The SEC classifies pink sheet trading as due to several inherent risks .

: Companies that have fallen below exchange requirements—such as maintaining a share price above $1—may be moved to the pink sheets . 3. Critical Risks to Consider

: A restricted tier for "dark" companies with no public disclosure; these are typically only available to professional and sophisticated investors . 2. Why Companies Use the Pink Sheets