What are the Pink Sheets?
Published daily, the Pink Sheets list publicly owned corporations whose securities are being traded by various market makers. Generally, these companies have not yet achieved the minimum criteria for listing in the NASD system. The Pink Sheet listings provide the names, phone numbers and subject quotes of each market maker for the various securities. The Pink Sheet listing is usually initiated by the various market makers. There are no minimum business or reporting requirements to get listed in the Pink Sheets. They can provide an important link to re-establishing trading for an inactive shell corporation.
Contrary to public perception, the Pink Sheets are not a stock exchange. The Pink Sheets are a quotation service designed to aid in the trading of mostly unregulated inexpensive stocks known as penny stocks. The name derives from its days as the National Quotation Board (NQB), when stock prices were published on sheets of pink newsprint. The NQB was founded in 1913. In its day, the NQB was a true market pioneer; using the most advanced communications technologies then available, it gathered and disseminated stock quotations from over four dozen cities across the United States. In 1963, the Commerce Clearing House purchased the NQB. The emphasis on technology and rapid information exchange was dropped, and before long the NQB had been reduced to publishing monthly journals. This lead directly to the formation of the National Association of Securities Dealers (NASD) and the Nasdaq Stock Market, as NQB was no longer filling the need for realtime quotations of lightly traded stocks. In 199
The Pink Sheets, like the Over-the-Counter-Bulletin Board (OTCBB), is an electronic quotation system. The Pink Sheets present quotes from broker dealers for many over-the-counter (OTC) securities. The Pink Sheets are useful for brokers to publish their bid and ask quotation prices. A privately owned company, Pink Sheets LLC, publish the Pink Sheets. The Pink Sheets electronic quotation system is not registered with the Securities Exchange Commission (SEC) and neither is the company a broker-dealer of the National Association of Securities Dealers (NASD). The Pink Sheets used to be published daily on pink paper and distributed to broker-dealers. This is where the name Pink Sheets originated. Since the electronic age the distribution of printed pages has ceased and all quotation information is available on line. What Is The NASD? The NASD is the National Association of Securities Dealers. NASD is the world’s leading private-sector provider of financial regulatory services, NASD has helpe
Pink sheets are daily listings of price quotations for thousands of over-the-counter securities that are not traded on Nasdaq. Published on pink paper by the National Quotation Bureau, they list stocks that are smaller, newer, and generally riskier and less actively traded than those listed on Nasdaq and the other traditional exchanges. The Pink Sheets also list the dealers who make a market in those securities. An electronic version of the Pink Sheets is known as the OTC Bulletin Board.
