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Glossary entry

Pink Sheets

Also known as: pink market · pink current · pink limited

The Pink market — historically called the 'pink sheets' — is the OTC tier for issuers that do not meet the disclosure or financial standards of OTCQX or OTCQB.

Before electronic markets, the National Quotation Bureau printed inter-dealer OTC quotes on pink-coloured paper, giving rise to the name 'pink sheets'. The market still exists under OTC Markets Group as the Pink tier and is split into Pink Current Information (some current disclosure), Pink Limited Information (limited or stale disclosure) and Pink No Information (effectively dark).

Pink-tier names include legitimate foreign companies that choose not to dual-list, distressed US issuers, shell companies and the long tail of micro-cap speculative names. The combination of light disclosure, low share prices and thin volume makes Pink-tier stocks the highest-risk segment of the public US equity market — and the segment most often associated with pump-and-dump activity.

Most mainstream brokers either block the Pink Limited tier entirely or impose restrictions: cash-only trades, no online order entry, broker-assisted only, or pricing surcharges. Day-trader-focused brokers like TradeStation, Cobra and Webull provide broader access at the Pink Current tier.

See also

  • OTC TiersOTC tiers are the quality bands OTC Markets Group assigns to over-the-counter securities — OTCQX (highest), OTCQB, Pink Current, Pink Limited and Grey — reflecting disclosure and listing standards.
  • Penny StockThe SEC defines a penny stock as a security trading under $5 per share — but in practice the term refers to thinly-traded micro-cap stocks, often on the OTC market.
  • Grey MarketGrey market securities are unlisted, unquoted equities that trade only by direct dealer negotiation — the lowest tier of US OTC stocks.

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