What is 'In The Pink'

In the pink is an informal expression used to describe a situation in which an investor or an economy is in a good financial position. Many people are familiar with this phrase, as it is commonly used in conversations that have nothing to do with money or financial instruments. More generally, it is often used to convey the idea that someone or something is in the best of health or condition.


In the pink is a phrase that often indicates a positive outlook or signifies a sense that there is good reason to be optimistic. When used in a financial context, this phrase indicates a positive, attractive position or value state. Blue chip stocks and healthy economies are examples of in-the-pink (or rosy) financial positions. This term is frequently used when economic conditions are showing string signs of improvement, or when the economy is moving quickly into a state of recovery. This in turn will often give a boost to blue-chip companies.

Financial analysts and experts will often share observations about which stocks are upwardly trending and showing positive growth, and thus are deemed to be in the pink. Savvy observers will try to capitalize on this assessment, and jump into the action of those stocks while there are still profitable deals available.

In the pink: origins and potential confusion

Use of the word “pink” may cause some confusion, as it may lead to assumptions involving another monetary concept using the same color. This term is unrelated to “pink sheets,” which are a name for daily publications produced by the National Quotation Bureau. These reports list bid and ask prices of over-the-counter, or OTC, stocks. The reports got their name because they were originally printed on pink-shaded paper. This financial market is now known as the OTC Markets Group. When a trader is buying and selling in the unregulated OTC market, they are sometimes said to be trading “in the pink.”

The origins of the phrase in the pink goes back several centuries. It is traced back at least to the late 1500s, when a version of the saying appeared in Shakespeare’s classic, Romeo and Juliet. In Shakespeare’s usage, though, it meant an outstanding example, with no connotation of health or vitality. It has also been linked to British fox hunting, where tradition dictated that riders who exhibited superior skills and an impressive level of service earned the privilege of wearing a scarlet jacket, which was considered a prestigious honor.

  1. Pink Sheets

    Pink sheets are a listing of securities of over-the-counter markets, ...
  2. OTC Options

    OTC options, traded in the over-the-counter market, allow negotiation ...
  3. Stock Market | Investopedia

    The stock market consists of the exchanges or OTC markets in ...
  4. Beating The Gun

    Beating the gun is a slang phrase used when an investor purchases ...
  5. Penny Stock

    A Penny Stock is an equity security that trades below $5. Penny ...
  6. Cash Is King

    Cash is king is a slang phrase reflecting the belief that money ...
Related Articles
  1. Trading

    Use Caution Trading Pink Sheets Stocks

    Pink sheets stocks can increase portfolio returns by large magnitudes in a short time, but come with significant risks.
  2. Investing

    How to Play Stocks in the Pink Market

    Stocks trading on the OTC Pink Open Market include many good companies waiting to be discovered. Find out how the OTC tiered companies into three markets.
  3. Trading

    OTCBB and OTC Markets Group

    The majority of larger companies that trade publicly choose to list their stocks on one of the major exchanges - the NYSE or Nasdaq. However, many companies are unable to meet the financial or ...
  4. Investing

    Hazardous and Wise Investment Phrases to Know

    These are some of the most well known investment phrases, good and bad, that investors need to be aware of.
  5. Insights

    Getting to Know the Stock Exchanges

    Here are the answers to all the questions you have about stock exchanges but are too afraid to ask.
  6. Investing

    The 10 Riskiest Investments

    Investors seeking high returns must also be prepared for high risk. Here are ten of the riskiest investments available.
  7. Investing

    The Alphabet Soup Of Stocks

    Are the countless stock categories leaving you puzzled? Here we help you sort through the confusion.
  8. Investing

    How to Invest in Penny Stocks (ADAT, ANAD)

    Is the lure of finding a diamond in the rough too strong to ignore? Then here's a guide to investing in penny stocks.
  9. Investing

    How to make a winning long-term stock pick

    Discover the key elements of making a winning stock pick and a good long-term investment using fundamental and economic data analysis.
  1. What does it mean when a stock trades on the Pink Sheets or the OTCBB?

    Stocks of well-known companies trade on major exchanges but must be listed first. Unlisted companies trade on Pink Sheets ... Read Answer >>
  2. How do I buy an over-the-counter stock?

    Buy and sell orders of over-the-counter (OTC) securities take place through market makers who carry an inventory of securities ... Read Answer >>
  3. What are the risks involved in OTC (over-the-counter) trading?

    Despite the inherent risks, the opportunity to turn a small investment into a potential fortune continues to attract traders ... Read Answer >>
  4. Which businesses use market segmentation?

    Find out what types of businesses use market segmentation, and how this strategy helps companies market their products more ... Read Answer >>
Trading Center