Pink Sheets

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Definition of 'Pink Sheets'

The Pink Sheets are a collection of over-the-counter (OTC) securities that are not listed on any major stock exchange. They are often referred to as "penny stocks" because they typically trade for less than $5 per share.

The Pink Sheets are not regulated by the Securities and Exchange Commission (SEC), so they are considered to be a riskier investment than stocks that are listed on a major exchange. Investors should be aware that there is a higher risk of fraud and manipulation in the Pink Sheets market.

There are a few different ways to trade Pink Sheets stocks. One way is to use a broker that specializes in OTC trading. Another way is to trade them directly through a Pink Sheets market maker.

Before you trade Pink Sheets stocks, it is important to do your research and understand the risks involved. You should also make sure that you are using a reputable broker or market maker.

Here are some additional resources that you may find helpful:

* [The Pink Sheets website](https://www.pinksheets.com/)
* [The SEC's website on OTC trading](https://www.sec.gov/oiea/investor-alerts-and-bulletins/investor-alerts/oiea-420.html)
* [The Investopedia article on Pink Sheets](https://www.investopedia.com/terms/p/pinksheets.asp)

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