2007-10-21 15:21:46 · 3 answers · asked by nickp 4 in Business & Finance ➔ Other - Business & Finance
"Pink sheets" refers to stocks that are traded "over-the-counter" rather than on major stock exchanges such as the NYSE, AMEX, or NASDAQ. These are generally small companies with very small numbers of shares issued ("small caps") and do not meet the SEC requirements to be listed on the major exchanges. They are followed by .PK in their ticker symbol. However, pink sheets has become a term applied to OTC stocks in general by many.
In general, investing in pink sheet and OTC stocks is risky business. Often there are no financial statements available to evaluate whether they are a good investment or not. Institutions (mutual funds and investment firms) shy away from these for good reason.
They are listed daily by the National Quotation Bureau and got their name because they were originally printed on pink paper.
They can be bought and sold through your full service or online broker, but often are thinly traded (few shares traded, not liquid) and you don't always get the price you bid or ask.
Bottom line-would not invest in these unless you're willing to accept the risk of losing most of your investment dollars. Stick to the major exchanges. There are bargains to be found there without the risk of the pink sheet stocks.
2007-10-21 15:37:38 · answer #1 · answered by wisedrdave 2 · 0⤊ 0⤋
Pink Sheets stocks are stocks that are, as a rule of thumb, penny stocks. They are over-the-counter securities, operated by the Pink OTC markets, that can not be listed on stock exchanges such as the New York Stock Exchange due to certain conditions that the company must meet. People usually invest in Pink OTC markets due to the potential of gaining a lot of profit from "investing" in such stocks as changes can happen rapidly within these stocks. It is nonetheless not advised. "Investing" in Pink OTC markets is not really "investing", but more so "gambling". The reason being is that Pink OTC markets are more liable to being bankrupt altogether, and are also more prone to stock investing fraud because to be listed on the Pink OTC market requires little, if any, filings. I would not advise indulging in such companies.
2016-05-24 02:28:40 · answer #2 · answered by hang 3 · 0⤊ 0⤋
I've tried really hard to do these. Once I figured out how I learned I'd have to do 1000 dollars to trade.
2007-10-21 15:26:38 · answer #3 · answered by Peggy Pirate 6 · 0⤊ 0⤋