Pink sheets

The function of the pink sheets market is to provide trading and circulation quotation services for those stocks that choose not to be listed on the American Stock Exchange or NASDAQ, or do not meet the listing conditions. Those quoted in the pink sheets market are those "unlisted securities (Unlisted Securities)", including:

1. The securities that are delisted from the NASDAQ stock market or from the exchange because they are no longer meet the listing criteria

2. The securities that delist from OTCBB market in order to avoid becoming a "reporting company".

3. Other securities for which at least one market maker is willing to quote. In the practice of securities trading in the United States, most of the stocks traded in the pink sheets market are forced to be delisted because the company itself is unable to submit financial reports or major event reports on a regular basis.

As a result, investors often call such companies "short" or "shell" companies, and such stocks are "junk stocks".

There are no special requirements for listing in the Pink Sheets market, and there is no requirement for continuous disclosure of financial and other information. It is worth mentioning that it is free to trade in the pink sheets market.