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Pink Sheets is a listing of over-the-counter stocks that are not listed on any established exchange such as the New York Stock Exchange or the NASDAQ. It is a publication of the National Quotation Bureau. Pink Sheets lists the bid and ask price for the stocks, as well as the market maker.

Companies listed in Pink Sheets are there because they do not meet the minimum requirements for listing on an established exchange. Most of these companies are small, and many operate in a small local areas, rather than at a national or international level. Generally, Pink Sheets stocks are not traded extensively. The stock prices are often very low, even a penny. In fact, Pink Sheets stocks are often referred to as penny stocks.

Brokerage firms allow their clients to invest in Pink Sheets stocks, but recommend caution. Investors might find good investments that have been overlooked by other investors in the Pink Sheets, but while finding a diamond in the rough may seem attractive, the SEC warns that these stocks are among the riskiest, due to lack of regulation. With few reporting requirements and little available data, investors risk losing their money in fraudulent stock scams.

Pink Sheets received its name because the listings were printed on pink paper at one time, but today, the Pink Sheets are published electronically and called OTC Pink.

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