Investments glossary

Pink Sheets

Pink sheets refer to a listing service for stocks that trade via over-the-counter (OTC). Pink sheet listings are companies that are not listed on a major exchange like the New York Stock Exchange (NYSE) or Nasdaq. The majority of stocks sold over-the-counter are low-priced penny stocks, meaning that they trade for less than five dollars per share. However, there are a large number of companies not considered penny stocks that merely opt to sell their shares through the over-the-counter network to keep share distribution activity inexpensive. Pink Sheets is also a private company that works with broker-dealers to market the shares of OTC equities they represent.

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