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