What are Pink Sheets Penny Stocks?

Pink sheets penny stocks? This article will be posted about definition of pink sheets penny stocks. Is it better if you will know what is penny stocks too?

Pink sheets is the another source for you to find penny stocks (another source is LLC or the Over-the-Counter Bulletin Board (OTCBB)).

Pink sheets penny stocks are shares by companies what don't have qualify enough to be listed in major stock exchange level or OTCBB.

PINK SHEETS PENNY STOCKS

Color of papers were printed on year 2000 is the reason they called pink sheets. For pink sheets stocks, there's no need to give any public information. Pink sheets are electronic quotation systems operated by the Pink OTC Markets and pink sheets are tier of OTCMarkets.com. With law, pink sheets penny stocks contains those stocks not need to report with the SEC.

Companies who invest in pink sheet level will shoulder very HIGH risk (including outside risk - limited liquidity in the stock market or predatory short sellers), so they must collect many information and learn good enough before buy penny stocks. However, if companies can gain profit from this, might recover bad financial situation (such as bankrupt). Sound like make a bet, huh?

Another thing that might be useful to you. ".PK" is suffix means pink sheets penny stocks too.

Source: PinkBroker, Yahoo! Answers