Pink Sheets Penny Stocks – What Are They?

Pink Sheets Penny Stocks

Pink sheets penny stocks are shares issued by small operations companies that do not qualify to trade at a major stock exchange level. List of penny stocks is updated daily through the Pink Sheet daily publication that is maintained by National Quotation Bureau where they can get exposure to penny investors. Pink sheets penny stocks take their name from the color of paper they had been historically printed on through year 2000. After that point, pink sheets penny stocks started being traded mostly online. In the modern world, Pink Sheets are more referred to as a market niche these stocks occupy and to help investors distinguish them from regular stocks that are being traded at major stock exchanges.

Penny stock companies shares are usually sold at so called “over the counter” level or through a network of stock dealers. Pink sheets penny stocks possess characteristic ticker that ends with a “.PK “symbol helping investors identify them.

Pink sheets penny stocks are not required to file regular reports with the SEC by law making it nearly impossible for investors to research their financial situation. Most companies trading at the Pink Sheet level are either very small operations or companies that are currently in financial distress or bankrupt. Investing in pink sheets penny stocks is a highly risky financial decision requiring you to gain full information on a specific company before you buy penny stocks online. On the other hand, speculative investors see a lot of potential in pink sheets penny stocks due to their high volatilities and high gain opportunities that are almost non-existent with regularly traded stocks.

If you would like to learn which penny stocks to watch or tips on how to reap big gains off penny stock investing, scroll over to read our other articles on these and other similar topics.