| If you are new to investing in stocks, you may be | | | | or are extremely small companies just getting off the |
| looking to find out what are pink sheet stocks. Pink | | | | ground. Because they do not have regulations in |
| sheet stocks are stocks which are not listed in the | | | | place, most people trying to buy these stocks have |
| over the counter listings of the NASDAQ, but are | | | | a tough time doing any research, because you can |
| traded over the counter using the National Quotation | | | | not find their financial information easily. |
| Bureau listings bid and asking prices of these stocks | | | | Many investment advisors choose not to trade this |
| which comes out daily. | | | | way, or recommend their clients against doing so |
| The pink sheets are actually an electronic system | | | | because of the difficulty in research and the large risk |
| that quotes and displays bid prices made by | | | | factor, although some clients are fans of it because |
| investment brokers and advisors. Most of the stocks | | | | they realize every company needs to start |
| that you will find are penny stocks or stocks that are | | | | somewhere, and because of the immense risk, there |
| not regularly traded. Stock brokers can have their | | | | is also a large potential to make money on a start up |
| asking price listed with the company, Pink Quote, and | | | | stock. |
| published using this system. These stocks got their | | | | The pink sheet company does try to list information |
| name because before the internet, they were listed | | | | on their website, including newly listed stocks you |
| on pink paper. | | | | may find interest in, and some financial reporting that |
| The reason pink sheet stocks can be pretty risky is | | | | they do have from companies who are more |
| because to be listed in the pink quote system, a | | | | forthcoming. Pink sheet stocks are extremely risky, |
| company does not have to follow any regulation like | | | | but also have the potential to make an investor a |
| stocks that are traded on the NYSE and NASDAQ. | | | | large amount of money. If you are looking to find |
| Most of these companies have stocks that are not | | | | more information about what are pink sheet stocks, |
| doing very well, are not being traded currently, have | | | | you can go to their website or contact an |
| been kicked off other exchanges for non-compliance, | | | | investment professional. |