OTC Markets Group, Inc.
informally known as "Pink Sheets"
is a private company that provides services to the U.S. over-the-counter
(OTC) securities market including electronic quotations, trading, messaging, and information platforms. According to the U.S. Securities and Exchange Commission
, OTC Markets Group, Inc. is not a stock exchange. The company simply facilitates the exchange of securities between qualified independent brokers.
The company was first established in 1913 as The National Quotation Bureau (NQB). For decades, the NQB reported quotations for both stocks and bonds, publishing the quotations in the paper-based Pink Sheets and Yellow Sheets respectively. The publications got their names from the color of paper they were printed on.
Pink Sheets is not a stock exchange
. To be quoted via Pink Sheets, companies
do not need to fulfill any requirements (e.g. filing financial statements
with the SEC
). With the exception of foreign issuers
, mostly represented by ADR
, the companies quoted in the Pink Sheets tend to be closely held, extremely small, thinly traded
, or bankrupt. Most do not meet the minimum for trading on a stock exchange
such as the New York Stock Exchange
. Many of these companies do not file periodic reports or audited financial statements
with the SEC, making it very difficult for investors
to find reliable, unbiased information about those companies.
For these reasons the SEC views companies listed on... Read More