How Do Pink Sheets Stocks Work? - Timothy Sykes

How Do Pink Sheets Stocks Work?

Have you heard about pink sheet stocks? Do you know how they are traded?

The pink sheets are a listing of over-the-counter stocks that works differently than an exchange. Many investors get a bit uneasy on the subject as they tend to be small, unproven companies. However, with the right knowledge and diligence, there is great opportunity amidst the risk associated with pink sheet stocks.

I created this infographic to give you an in depth understanding of the types of pink sheet stocks, how they trade and what information investors should know!

Download a PDF version of this post.

Click on the image below for a larger view. 

PinkSheets 1.0-01 (1)


The biggest appeal that pink sheets carry for investors is their low price. These stocks are attractive to those investors who seek get in on the ground floor of an up-and-coming company or who have hope in a company that was once great and shows promise of a rebound.

The biggest drawback to pink sheet stocks is the lack of transparency, volatility and lack of a stringent regulatory agency to protect investors. However, for investors willing to perform their own research and due diligence, these stocks can provide significant returns.

With the addition of the new tier system, there is hope for investors, as they can avoid those pink sheet stocks whose extreme risk is unlikely to provide any opportunity aside from losing their buyer’s investment. This is also helpful to legitimate companies listed in the pink sheets to differentiate them from the pack.

More than many investment vehicles, pink sheet stocks bear risk. However, for those diligent investors with nerves of steel and an eye for potential, pink sheet stocks represent an area of potential gain worth considering.

Posted in Infographics

Become a Millionaire

I Turned $12,415 into $4,650,000 Trading Penny Stocks. Now it's your turn.

Apply To Work With Me


Timothy Sykes

Hey Everyone,

As many of you already know I grew up in a middle class family and didn't have many luxuries. But through trading I was able to change my circumstances --not just for me -- but for my parents as well. I now want to help you and thousands of other people from all around the world achieve similar results!

Which is why I've launched my millionaire challenge. I’m extremely determined to create a millionaire trader out of one my students and hopefully it will be you.

So when you get a chance make sure you check it out.

PS: Don't forget to check out my free Penny Stock Guide, it will teach you everything you need to know about trading. :)

Leave a Reply

Your email address will not be published.