Pinkslips stock market
The stocks of well-known companies such as General Electric and Microsoft trade on major exchanges such as the New York Stock Exchange NYSE and Nasdaq.
But companies like GE and Microsoft must be listed - that is, accepted for trading purposes by a recognized and regulated exchange - prior to actually trading on an exchange.
When a company isn't listed, it often will trade on the Pink Sheets or the Over the Counter Bulletin Board OTCBB. A stock that doesn't trade on a major exchange is said to trade over the counter OTC. This means that the stock is dealt between individuals connected by telephone and computer networks.
When a company is facing tough times and is unable to meet the requirements for continued listing on the Nasdaq or NYSE, it will be delisted. This usually happens to companies that are under financial strain and near bankruptcy.
Even when listed on the OTCBB, companies are still required to maintain SEC filings and minimum requirements set by the OTCBB; however, these requirements are considerably easier to meet than those set by the national exchanges. If a company undergoes bankruptcy proceedings or misses certain SEC filings, an additional letter will be added to the company's ticker symbol to notify investors of this problem.
In such a case, a company may choose to test the waters of the OTCBB, using it as a stepping stone before leaping into the larger exchanges and markets.
The Pink Sheets are different from the OTCBB.
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Companies on the Pink Sheets are not required to meet minimum requirements or file with the SEC. So-named because they were actually printed on pink paper, the Pink Sheets started out as a daily quote service provided by the National Quotation Bureau. Typically, companies are on the Pink Sheets because either they are too small to be listed on a national exchange or they do not wish to make their budgets and accounting statements public.
To avoid having to file with the SEC, some large foreign companies such as Nestle S. Companies listed on the Pink Sheets are difficult to analyze because it is tough to obtain accurate information about them. The companies on the Pink Sheets are usually penny stocks and are often targets of price manipulation. They should only be purchased with extreme caution. Want to start trading OTC stocks? Check out which online broker offers the best tools here.
To learn more about penny stocks often associated with the over the counter market check out these articles: The Lowdown on Penny Stocks and Catching a Lift on the Penny Express.
Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.
Why Serious Investors Should Pay Attention to Pink Sheet Stocks - ylugudivalul.web.fc2.com
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What does it mean when a stock trades on the Pink Sheets or the OTCBB?
By Investopedia Staff Share. Companies will typically be listed on the OTCBB for one of two reasons: Let's start by walking through the reasons for listing requirements and what happens when a company's stock is delisted from Read about pink sheets, the electronically driven over-the-counter market in which broker-dealers connect to trade the stock PK is an example of a suffix representing where the security is traded - an over-the-counter OTC network or an international Short selling is an effective trading strategy that can be employed to hedge the risk of a loss on an off-setting position The over-the-counter bulletin board OTCBB is a regulated quotation service for over-the-counter OTC securities.
Being early to a party may not be hip, but being early on a rising stock certainly is. Pink Sheets is a listing of over-the-counter stocks that are not listed on any established exchange such as the New York Stock Exchange or the NASDAQ. Pink Sheets stocks offer exciting opportunities to increase portfolio returns by large magnitudes in a short time. However, these opportunities come with significant risks.
The OTC Pink offers a variety of investment candidates including many good companies waiting to be discovered. Recently, the OTC Pink has worked hard to improve the service by tiering companies Think penny stocks will make you rich? If you don't understand the risks, you could end up penniless.
Listed securities are "the cream of the crop". Find out how a firm can lose that status and why you should be wary. Penny stocks can soar in a short period, but dabbling in them is a dangerous game.
Here is a breakdown on the risks and rewards of penny stocks. Penny stocks are speculative and highly risky investments. Lack of government and stock exchange oversight and general information leaves penny stock investors open to sudden losses.
Discover how to distinguish a real investment opportunity from a fraudulent one. Here are the answers to all the questions you have about stock exchanges but are too afraid to ask. A stock that trades at a relatively low price and market capitalization, A United States bulletin that provides updated bid and ask prices A securities exchange, or place of commerce, where a large number An expense ratio is determined through an annual A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies.
A period of time in which all factors of production and costs are variable.
In the long run, firms are able to adjust all A legal agreement created by the courts between two parties who did not have a previous obligation to each other.
A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator.
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