Pink Sheets

1 article tagged with this topic

Pink sheets refer to the lowest tier of OTC-traded securities — companies that do not meet the listing standards of major exchanges and often have minimal public reporting requirements. The name originated from the pink paper on which these OTC quotations were historically printed before electronic trading systems replaced them. Trading pink sheet stocks carries the highest risks of any market segment, including extreme illiquidity, wide bid-ask spreads, and a high prevalence of promotional schemes, making thorough due diligence and disciplined position sizing essential.