OTC Pink



The lowest tier of the three marketplaces for trading over-the-counter stocks provided and operated by the OTC Markets Group. The OTC Pink Marketplace offers trading in a wide range of equities through any broker, and includes companies in default or financial distress. Since it has no disclosure requirements, OTC Pink companies are categorized on the basis of information provided by them. OTC Markets somewhat euphemistically bills OTC Pink as “The Open Marketplace with Variable Reporting Companies.”


Due to the variable nature of reporting by OTC Pink companies, they are classified based on the quality and quantity of information provided to investors as companies with Current Information, Limited Information or No Information.

“Current Information” companies are those that follow the International Reporting Standard or Alternative Reporting Standard by making filings publicly available through the OTC Disclosure & News Service. “Limited Information” companies include troubled firms in financial distress, bankruptcy, or those with accounting issues, as well as companies that are unwilling to meet the OTC Pink Basic Disclosure Guidelines. “No Information” companies are those that do not provide disclosure.

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  1. What does it mean when a stock trades on the Pink Sheets or the OTCBB?

    The stocks of well-known companies such as General Electric and Microsoft trade on major exchanges such as the New York Stock ... Read Full Answer >>
  2. Can investors short sell pink sheet or over-the-counter stocks?

    Short selling is an effective trading strategy that can be employed to hedge the risk of a loss on an off-setting position ... Read Full Answer >>
  3. What are the steps to get a company listed on the OTCBB?

    The over-the-counter bulletin board (OTCBB) is a regulated quotation service for over-the-counter (OTC) securities. The securities ... Read Full Answer >>
  4. How does a company move from an OTC market to a major exchange?

    The over-the-counter market is not an actual exchange like the NYSE or Nasdaq. Instead, it is a network of companies that ... Read Full Answer >>
  5. Do penny stocks trade after hours?

    Penny stocks are common shares of public companies that trade at a low price per share. These companies are normally small, ... Read Full Answer >>
  6. What is a "pink sheet" in the context of an OTC (over-the-counter) transaction?

    In the over-the-counter (OTC) market, pink sheets are daily publications with bid and ask prices of over-the-counter stocks. ... Read Full Answer >>

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