What is the OTC Pink Sheets?
The Pink Sheets s a centralized quotation service that collects and publishes market maker quotes for OTC securities in real time.
Companies that trade on the Pink Sheet exchange do not have to report to the SEC or any other regulatory body. The Pink Sheet exchange does not list bid and ask prices of securities.
The Pink Sheet exchange hosts a website that provides price quotes, financial news and information about OTC companies to investors. Designed to democratize information on OTC companies and OTC markets, pinksheets.com offers free quotes with a fifteen-minute delay.
The mission of the Pink Sheets is to create greater transparency in the OTC markets, by using state-of-the-art Internet technology to give investors the information they need to make informed investment decisions. The Pink Sheets is not a stock exchange or a regulated entity. Price quotations are provided by OTC market makers and company information is provided by the OTC companies.
What is the OTC Market?
OTC, or "Over The Counter," securities are issued by companies that either choose not to, or are unable to, meet the standards for listing on the NASDAQ or a stock exchange. OTC equity securities can be quoted on the Pink Sheets Electronic Quotation Service, or, if the companies are SEC reporting, on the NASD OTC Bulletin Board Service.
The OTC market presents investment opportunities for intelligent, informed investors, but also has a high degree of risk. Many OTC issuers are small companies with limited operating histories or are economically distressed.