The Pink Sheets

Revolutionizing OTC Markets and Improving Capital Formation.
What do Rolls Royce Aerospace, Nestle Chocolate
and Heineken Beer have in common?
They all trade on the Electronic Pink Sheets (also known as “The National Quotation Bureau” (NQB)). The Pink Sheets have been around since 1900. (see a history of
the Pink Sheets below) Many CEO’s are choosing to go public and trade over-the-counter on the “Pink Sheets” because it offers many of the advantages of NASDAQ without the SEC reporting requirements and audited financials.
Due to the increasing popularity and interest in the Pink Sheets this Newsletter “will provide” you with information on the Pink Sheets, including its very long history and important contributions to Wall Street and U.S. Capital Markets.
The Pink Sheets are increasingly becoming an alternative to the OTC Bulletin Board and NASDAQ. Many experts are enthusiastically recommending the Pink Sheets today because it allows a company to have many of the same benefits of a private and a public company.
Recently, we have received many inquiries regarding trading on the Pink Sheets. This is because many companies that want to “Go Public” would like to have
the benefits of having their securities publicly traded without having audited financials and filing periodically
with the Securities and Exchange Commission.
The fact that companies can go public and not have to
deal with Sarbanes Oxley, audited financials and SEC reporting is attractive to many smaller companies wishing to take advantage of the benefits of being a public company.

Any company including a start up or development stage company can “Go Public” and trade on the Pink Sheets because it does not have any requirements pertaining to revenues, earnings, time in business or assets. the OTC Bulletin Board also does not have asset or revenue requirements).
More and more companies have chosen to trade on the Pink Sheets. Because they either do not have the asset requirements to trade on NASDAQ or prefer not to have the reporting requirements.

THE PINK SHEETS:
The Pink Sheets® are the leader of pricing and financial information for the over-the-counter (OTC) securities markets. The Pink Sheets increase the transparency of information available in the OTC markets so as to make them more efficient for all participants. The centralized information network is designed to benefit market makers, issuers, brokers and OTC investors.Pink Sheets information enhances the efficiency of OTC trading, provides better executions for OTC investors and improves the capital formation process for OTC issuers.
The origins of the Pink Sheets go back to 1904, when the “National Quotation Bureau” (NQB) began as a paper-based, inter-dealer quotation service linking competing market makers in OTC securities across the country.

Since that time, the Pink Sheets and the Yellow Sheets have been the central resource for trading information in OTC stocks and bonds.
In the late 1990’s the Pink Sheets transformed itself even further utilizing the power of the Internet and the advances in electronic web based technology to increase the quality, timeliness and value of its information and services.
The introduction of web-based technology is revolutionizing this segment of the securities markets.

In September of 1999, Pink Sheets introduced their Electronic Quotation Service, an Internet-based,
real-time quotation service for OTC equities and bonds
for market makers and brokers.

Today Pink Sheets provides broker/dealers, issuers and investors with electronic and print information services designed to improve the transparency of the OTC markets. This is assisting in the greater efficiency of these markets, leading to greater liquidity and investor interest
in OTC securities.
Pink Sheets is the source of competitive market maker quotations, historical prices and corporate information about OTC issues and issuers.

This is why so many well known companies trade on the Pink Sheets such as Nestle, Rolls Royce, Heineken and dozens of smaller banks.

Advertisements

Tags: , , ,

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s


%d bloggers like this: