Pink Sheets are a type of financial market quotation service that provides pricing information for over-the-counter (OTC) securities. OTC securities are securities that are traded outside of traditional exchanges, such as stocks, bonds, and other financial instruments.Pink sheets get their name from the color of the paper that the quotes were originally printed on. Today, pink sheet quotes are often available electronically, but the name has stuck.
Pink sheets are operated by the Pink Sheets LLC, a company that is now a subsidiary of OTC Markets Group. The Pink Sheets provide real-time quotes for OTC securities, as well as other information such as trading volume, bid and ask prices, and market maker quotes.Pink sheets are often used for securities that are not listed on a formal exchange, such as penny stocks, microcaps, and foreign securities. These securities may not meet the listing requirements of a formal exchange, or the issuing company may choose not to list on an exchange for various reasons.Investors should be aware that pink sheet securities may be more risky and less liquid than securities that are listed on a formal exchange, and they may be more susceptible to manipulation and fraud. It is important to carefully research any pink sheet security before making an investment decision.
