OTC Pink Sheets 101

 OTC Pink Sheets 101



OTCMarkets Group operates the world’s largest electronic inter-dealer quotation system for broker-dealers to trade unlisted securities. The OTCMarkets OTC Markets Investor Relations Firm  Group categorizes issuers into three tiers to fit the wide spectrum of OTC issuers.

The OTC Pink Tier

The Pink Sheets is one of the tiers used to categorize issuers who do not file reports with the Securities and Exchange Commission (“SEC”). The OTCMarkets describes the OTC Pink Sheets as an “electronic quotation and trading system” for over-the-counter securities operated through a “inter-dealer quotation service.” Secondary trading of the securities of OTC Pink Sheet issuers is facilitated only between broker-dealers. There are approximately 2,665 companies quoted with the OTC Pink Sheets Current Information Tier.

Requirements of the OTCMarket’s Pink Sheets Current Tier

Current SEC reporting companies and non-U.S. companies that are listed on a qualified foreign stock exchange automatically qualify for the Pink Sheets Current Information tier.

Issuers not reporting with the SEC must subscribe to the OTCMarkets Disclosure and News Service to be quoted with the Pink Sheets Current tier as well as publicly file an initial Information and Disclosure Statement with a signed Attorney Letter Agreement by the issuer’s SEC attorney.

While Pink Sheets listing requirements are minimal, the OTCMarkets established specific disclosure requirements for companies quoted with a “Pink Sheets Current” disclosure tier.

Disclosure Standards of the OTCMarket’s Pink Sheets Current

Issuers must file annual and quarterly disclosures (“Information and Disclosure Statements”) as well as updates in order to maintain the Pink Sheets Current tier. Annual reports must be filed no later than 90 days after the end of each fiscal year and quarterly reports must be filed no later than 45 days after the end of each fiscal quarter.



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