Originally Posted by Smooth_Trunkfish
Wouldn't the market value have to be at least $1 per share before listing on any of the exchanges?
No I believe what you are referencing is listing on the NASDAQ - not the OTCBB. Here is a description of pink vs. BB...
So where do pink sheet stocks fit in? This market (technically, it's a quotation service) is actually run by a company called Pink Sheets LLC, and is yet another computerized over-the-counter market, though with several key differences. Like OTCBB stocks, only a market maker can list and provide quotes for a Pink Sheet equity.
What are the Differences? There are essentially no size or registration requirements for a stock to trade on the Pink Sheets. And, a Pink Sheet listing does not preclude being listed on other exchanges. The biggest difference, though, is the lack of SEC filing requirements. Pink Sheet companies DO NOT have to provide disclosure of their financial results and material information (though they are strongly encouraged by Pink Sheets LLC to do so). On the other hand, they aren't forbidden to file these documents. Many company’s looking to move from the Pink Sheets to the OTCBB or AMEX or Nasdaq exchanges will begin reporting as a Pink Sheets company to get all their reporting infrastructure and audits done to begin the process of qualifying for the OTCBB or a larger stock exchange.
As a consequence, many Pink Sheets companies voluntarily submit quarterly and annual filings. The goal is to establish credibility with the marketplace, and perhaps make it easier to achieve a bulletin board or exchange-listing in the future. So, investors should not totally avoid pink sheet stocks simply due to a lack of exchange or SEC regulatory requirements. You may find many Pink Sheet equities with full disclosure, and in some cases, far better results than OTCBB or even exchange-listed companies. But as always, do your own homework and consider you stock trading prospects on a case-by-case basis.
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