What is the OTC Market?
In essence, the OTC market exists to make the securities marketplace fairer for smaller, lower capitalized companies. The OTC market affords these smaller companies with some of the benefits of being publicly traded, even though they may fall short on NASDAQ or stock exchange listing requirements. Stock quotes for thee companies are features on the Pink Sheets Electronic Quotation Service or NASDAQ OTC Bulletin Board Service (if they are SEC reporting companies). What does Pink Sheets mean? For starters, the Pink Sheets is not an exchange, but more so a centralized quotation service that collates and features for OTC securities. The Pink Sheet system is intended for non-reporting companies and does not list bid and ask prices of securities. The Pink Sheet system’s web site provides price quotes, financial news and relevant information pertaining to OTC companies. Theoretically, the Pink Sheets system offers a fair and equal forum for OTC companies in order to give them a fighting chanc
