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Saturday, 09/29/2018 3:30:24 PM

Saturday, September 29, 2018 3:30:24 PM

Post# of 32150
Grey Sheet Outlook:
Risks are Limited in some important areas:

The SEC has established certain regulations for Gray Sheet stocks that limit risks to investors, as follows:

• The stock may not be solicited or advertised - so pump-n-dump scams by broker, mail, fax, etc are limited.

• Grey Sheet stocks that do have a public offering of shares cannot be shorted. This is a benefit in that unreasonable plunges in share values are minimal because broker-dealers and other investors and scam artists cannot short the stocks by law.



Gray sheet stocks usually trade higher than they would when officially traded on one of the exchanges considering the size of the company, but that is mostly because so few shares exist with such low market cap - less than $1 million usually - in comparison to publicly traded companies.