A pink sheet is a daily publication of bid-ask quotations for companies not yet listed or unwilling to get listed on any major stock exchange. Earlier, the quotations would come printed on pink paper sheets, which now take an electronic form.
* Pink sheet stocks get traded in over-the-counter marketplaces (OTC) instead of direct trading on exchanges. Such stocks are also not under the purview of regulatory reporting.
* Most pink sheet stocks belong to new companies that are uninterested in regulatory exchange filings or for whom such reporting can be costly. Pink sheet stocks are very often from the penny stocks category and are prone to volatility risks.