SK3 Group Inc. (SKTO)

[DarthYoda]

Gray Sheets as IPO's:
Gray Sheets are commonly associated with Initial public offering (IPO) stocks or start up companies or spin-off companies, even though not all are IPO's, start-ups or spin-offs.


IPO's are new shares of stock publicly sold unofficially before they trade on any stock exchange or other financial market.


In the case of IPO's, start-ups, and spin-offs, the idea for being listed on the Gray Sheets is most likely for seven major reasons:


• to obtain a stock symbol, transfer agent and shareholder base without attracting attention from the general public, at least for the time being.

• to formulate, structure, and pursue a business plan and operation for future growth and success.

• to gain a history of trading, and shareholder growth, until such time that a company qualifies to offer public shares, or to be traded on the Pink Sheets, OTCBB, or one of the stock exchanges. This all depends on the goals of a company and its qualifications.

• to accumulate shares from private and public sources in preparation to meet requirements to be listed on the Pink Sheets or OTCBB.

• to get an idea of the investor reception once they are officially traded (for IPO's)

• to gain investor awareness and potential funding/financing options

• to limit the fees and regulations associated with Pink Sheets, OTCBB or the Stock Exchanges. Many start-ups do not qualify to register to trade on the other financial markets.

In addition, the costs associated with registering can be prohibitive.

The Grey Sheets offer a start-up company the opportunity to grow so that later they may meet the qualifications and expenses to be traded on a more prestigious financial market.


http://www.extraordinaryinvestor.com/grey-sheets.html