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Wednesday, March 7, 2007

Difference Between OTCBB and Pink Sheet Stocks?

Both OTCBB and Pink Sheet markets are used to trade stocks usually of small companies. Although both OTCBB and Pink Sheet stocks are traded Over-the-Counter (OTC), both markets differ in many aspects.

There are mainly two types of companies whose stocks are traded in OTCBB market. They are the companies delisted from major stock exchanges and small companies failing to meet listing requirements of major stock exchanges. The delisting of companies takes place when they fail to meet listing requirements and are usually under financial crisis. The second type of companies is really good for investing and once they attain the listing requirements, they can easy move into major exchanges. Although finding a place in OTCBB market is easy for most companies, they still have to maintain some minimum requirements.

On the other hand companies having Over-the-Counter stocks traded though Pink Sheet market does not need to meet any minimum requirements. Pink Sheet Companies are usually every small or companies want to hide their financial status from public. Most of the stocks offered by these companies come under the criteria penny stocks.

This information is provided by NobleTrading.com, a worldwide brokerage firm, offering direct access services for online stocks trading, options trading, futures trading, commodities trading and forex trading on a variety of trading software platform.

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