What is a “grey sheet”?
A grey sheet is a designation given to a shell with no market makers. It is not listed, traded or quoted on any stock exchange, including the pink sheets. Trades in grey market stocks are reported by broker-dealers to their Self Regulatory Organization (SRO) and the SRO distributes the trade data to market data vendors and financial websites so investors can track price and volume. Since grey market securities are not traded or quoted on an exchange or interdealer quotation system, investor’s bids and offers are not collected in a central spot so market transparency is diminished and best execution of orders is difficult. Never buy a grey sheet shell. They are worthless.
