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Friday, 06/10/2022 1:04:20 PM

Friday, June 10, 2022 1:04:20 PM

Post# of 23466
This is Wolverine Technologies...This is Bruce.

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Pink Sheets Stocks

Caveat Emptor


Investors should also be aware of four additional cautions.

First, most OTC stocks do not meet the minimum requirements for most exchanges and do not file with the SEC.4? Therefore, credible and reliable fundamental data are not available for analysis.

Second, historically, Pink Sheets stocks are penny stocks and are often near-insolvent companies.

Third, some stocks are illegitimate shell companies set up to scam investors by issuing press releases and having “analysts” promote the stock and issue more worthless shares.1? 2?


Fourth, pink sheets only have one requirement for a company to list: A company needs to have one market maker quoting its stock. The listing companies do not have to provide any financial information at all.5? 2?

One common scam involving OTC investors is the pump and dump scheme where promoters buy penny stocks, promote and push up the prices for other investors and then dump their stocks while the late investors are stuck with worthless stock they overpaid to own.1? These stocks are often promoted in spam emails or on message boards and blogs.
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