and have to comply with very few regulations only. When it comes to Pink Sheets OTC 城管高考索矿泉水 陈龙二胎儿子出生

UnCategorized A share is a unit of ownership of a company. These shares are bought and sold by individuals and institutions. The shares of most major companies are traded on stock exchanges like NASDAQ and AMEX. However, there are some companies that are traded outside these stock exchanges. These are companies that are very small and do meet the minimum market capitalization requirement of the stock exchanges. These shares of stock are traded on the Over The Counter Bulletin Board (OTCBB) and Pink Sheets. Pink Sheets, so called because they are printed on pink paper, started as a daily quote service. Now, it is an electronic system that displays the latest quote prices, volume, and the last price sold of shares that are traded in the Pink Sheets OTC. The Pink Sheets headquarters is located in New York City. In 2007, $160 billion worth of securities was traded in the Pink Sheets. What kinds of companies trade in Pink Sheets? The Securities and Exchange Commission (SEC) has laid down certain regulations that have to be followed by companies whose shares are traded on stock exchanges. If the company does not meet those regulations, then they can trade on the OTCBB, and have to comply with very few regulations only. When it comes to Pink Sheets OTC, there are no regulations at all. Most of the shares traded here are of much less value and they can be identified with the extension .PK. Pink Sheets companies do not have to disclose any kind of information about their company. Financial statements, profit margins, long-term goals, future outlook or budget need not be displayed to the public and no statements or forms have to be files with the SEC. Some companies take advantage of these pink sheets. For example, Nestle S.A entered the United States Securities Market through pink sheets because no filings to SEC are mandatory. Except for foreign companies trading through American Depositary Receipts (ADRs), the companies trading in Pink Sheets are small, closely held companies that have a low trade volume. Since August 2007, pink sheets companies have been categorized based on their levels of disclosure. However, it is important to note that these categories do not reflect the quality or risk of investment. The Pink Sheets Current Information lists companies that regularly disclose their earnings and other reports to the public. On the other hand, the Pink Sheets Limited Information lists companies that have financial difficulty and hence have only very limited information available for the public. Finally, the Pink Sheets No Information category lists companies that have not filed any financial information during the last six months. These companies are considered suspicious and highly risky. Investors should steer away from the last category. As an investor, one must be very careful while investing in these companies because there is very little information available about these companies. It is difficult to analyze whether the company will do well in the long run and if it is worth the investment. Another problem with these shares is that they are very manipulative and this paves way for frauds. Therefore, every investor should exercise extreme caution before investing in companies that trade in Pink Sheets. About the Author: 相关的主题文章: