Pink Sheet stocks are over-the-counter (OTC) securities that do not meet the listing standards required to trade on the NYSE, Nasdaq, AMEX or other major stock exchange due to their limited capitalization and/or the limited number of shares outstanding. With a few exceptions, Pink Sheet stocks are small, thinly-traded issues that often carry a great deal of risk. Most Pink Sheet stocks are not very liquid, and as such, bid/ask spreads are often quite wide. Online quotes for these securities are not "firm", but instead are meant to provide indications of price only.

History of the Pink Sheets
The daily listings of OTC securities were first circulated on pink paper by the National Quotation Bureau in 1904 to connect competing OTC market makers nationwide. In 1999, an internet-based electronic OTC quotation system was developed, and in 2000, www.pinksheets.com was introduced to supply updated information about OTC securities. Today, the electronic format and hard copy Pink Sheets provide market makers, broker/dealers, issuers and investors with state-of-the-art products and services designed to improve the transparency of the OTC markets.

Investing in Pink Sheet Stocks
The acquisition of reliable information about a company's management, products, services, and finances is the first step to investing wisely. However, accurate information about Pink Sheet stocks can be difficult to obtain because many do not file financial reports with the SEC.

While all investments involve varying levels of risk, Pink Sheet stocks are among the most speculative. Many of these firms are still in early development stages and have no proven track record. While many are legitimate businesses with real products and services, the lack of reliable data and readily available public information can easily expose them to fraud and manipulation.

Pink Sheets LLC
The Pink Sheets are published by Pink Sheets LLC (formerly known as the National Quotation Bureau), a privately held company headquartered in New York City. Pink Sheets LLC is not registered with the SEC as a stock exchange, and the agency does not regulate its activities.

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