The OTC Markets Group provides quotes for pink sheet stocks. The OTC operates three trading marketplace tiers. The OTCQX requires the OTC Markets Group to conduct a qualitative review. The OTCQB requires a minimum price of one penny as well as an annual certification that the company's information is up to date. Pink is the third colour. It's a free market with no reporting requirements. 1

These OTC platforms do not have the same reporting requirements as the major exchanges. They are decentralised networks of brokers and dealers that are entirely electronic and do not have a trading floor.

Pink sheet stocks are shares of companies traded over-the-counter (OTC) rather than on formal exchanges like the NYSE or NASDAQ. These stocks are listed on the OTC Markets Group’s Pink Open Market, often referred to as the pink sheets. They typically represent smaller, less regulated, or foreign companies.

Unlike major exchanges, pink sheet stocks do not require strict financial reporting or regulatory compliance, making them riskier and less transparent. Prices are quoted electronically through broker-dealers, but trading volume can be low, leading to liquidity challenges.

Investors are drawn to pink sheets for their potential high returns, but they face risks like price volatility and fraud. Extensive research is essential when trading these speculative stocks.