Expert: Paul Henneman - 6/3/2007

Question
What is the difference between Pink Sheets and OTC stock? Is pinks any more risky than OTC? I cannot find the difference. Both don't have the transparency to be listed on NASDAC but neither are they ADRs. Whats the difference? Are Pink Sheets stock that has fallen below the OTC reliability ratings?

Answer
Larry,
   Thank you for your question!
Pink sheets and OTC stocks are essentially the same thing. Pink sheets refers to the lists that are published that show the current trading price of OTC (over the counter) stocks.
   Barron's "Dictionary of Finance and Investment Terms" does  a good job of defining Pink Sheets on page 449:
"Pink Sheets: daily publication of the national quotation bureau that details the bid and asked prices of over the counter (OTC) stocks not carried in daily newspaper listings of NASDAQ stock market.  Brokerage firms subscribe to the pink sheets - named for their color - because the sheets not only give the current prices but list market makers who trade each stock."

I hope this helps! Please do not hesitate to follow up with me if I can be of any additional service,

Sincerely,
Paul Henneman
President
ValuEngine Inc
www.ValuEngine.com