Buying Pink Sheet Stocks -
: A restricted tier for "dark" companies with no public disclosure; these are typically only available to professional and sophisticated investors . 2. Why Companies Use the Pink Sheets
: Companies that have fallen below exchange requirements—such as maintaining a share price above $1—may be moved to the pink sheets . 3. Critical Risks to Consider buying pink sheet stocks
: These stocks often have very low trading volumes. This can make it difficult to sell your shares quickly without significantly impacting the price . : A restricted tier for "dark" companies with
: Because of low liquidity, even small trades can cause massive, rapid swings in price . : Because of low liquidity, even small trades
The OTC Markets Group organizes securities into tiers based on the quality and frequency of information the company discloses to the public .
: The market is a frequent target for "pump and dump" schemes and fraudulent shell companies designed to mislead investors . 4. How to Buy Pink Sheet Stocks What Are Pink Sheet Stocks? - The Motley Fool
: Small or startup companies often cannot afford the millions in listing fees and ongoing compliance costs associated with the NYSE or Nasdaq .