What are the pink Sheets?

Pink sheets got their meaning from the pink color of the pieces of paper where the quotes of share prices were being indicated. Hence, pink sheets are a listing service for securities that trade via the over-the-counter exchanges. The companies that trade via pink sheets are not listed on the renowned foreign exchanges like the New York Stock Exchange or London Stock Exchange. 

 

Pink Sheets are usually small penny stocks that are bought or sold over-the-counter at prices less than five dollars.

 

Trading pink sheets are therefore considered risky because of their inherent lack of liquidity as well as less regulatory oversight leaving the traders vulnerable to fraud and exploitation.