Sheet Stocks: Buying Pink

The SEC classifies pink sheet trading as due to several inherent risks .

: Because of low liquidity, even small trades can cause massive, rapid swings in price . buying pink sheet stocks

: Small or startup companies often cannot afford the millions in listing fees and ongoing compliance costs associated with the NYSE or Nasdaq . The SEC classifies pink sheet trading as due

: Many pink sheet companies are not required to file financial statements with the SEC, making it difficult for investors to verify their health or operations . even small trades can cause massive

: These stocks often have very low trading volumes. This can make it difficult to sell your shares quickly without significantly impacting the price .