Pink Sheets

Pink Sheets, officially known as OTC Pink, is the lowest tier of the over-the-counter market operated by OTC Markets Group. The name originated from the pink-colored paper on which quotes were historically printed. Companies listed on the Pink Sheets have minimal to no reporting requirements — they don't need to file with the SEC or meet any financial standards. This tier includes a wide range of securities: legitimate foreign companies that choose not to list on U.S. exchanges, shell companies, companies in financial distress or bankruptcy, and outright fraudulent entities. OTC Pink is further subdivided into "Current Information," "Limited Information," and "No Information" categories based on how much the company discloses. Investors should exercise extreme caution with Pink Sheet stocks, as the lack of transparency makes fundamental analysis nearly impossible and the market is prone to manipulation.