Qs---
What makes this a pinky and why are stocks in the pink sheets high risk?
The Pink Sheets are different from the OTCBB, NYSE, AMEX, etc... 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.A. have penetrated the American securities markets through the Pink Sheets.
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 as it is figured that approximately 90% of them are pure scams. Good luck finding the 10% that are not...