Buying Pink — Sheet Stocks

: Many pink sheet companies are not required to file financial statements with the SEC, making it difficult for investors to verify their health or operations .

The OTC Markets Group organizes securities into tiers based on the quality and frequency of information the company discloses to the public . buying pink sheet stocks

: Small or startup companies often cannot afford the millions in listing fees and ongoing compliance costs associated with the NYSE or Nasdaq . : Many pink sheet companies are not required

: Companies that have fallen below exchange requirements—such as maintaining a share price above $1—may be moved to the pink sheets . 3. Critical Risks to Consider even small trades can cause massive

: Because of low liquidity, even small trades can cause massive, rapid swings in price .