OTCBB is the Over the counter Bulletin Board a service that requires filing annual and quarterly reports and has closer regulation, The Pink Sheets, designated by PK, is for the most part unregulated and does not require Qtr and annual reporting. The Pink Sheet system was set up by the SEC to allow a start up company to grow while keeping the cost of filing reports at a minimum. That way that do not divert their start up earnings into costs that won't bring them an immediate return.
Special circumstances do require giving notice.
Both systems suck. The better quality trading systems such as the NASDAQ, American Exchange and New York Stock Exchange are closely monitored and require certain requirements to be a member. There are fees to be paid for these services and reporting varies by exchange. The higher the exchange it is thought to have less risk, but there are failures on all exchanges.
I concern myself with the company I invest in and not so much the exchange they trade on. It follows the more successful a company is the better exchange they want to be on because the more exposure they get to the financial markets. Start up companies with little or no revenue are usually Pink sheet companies and as they grow they migrate upwards to a better exchange. The company should be able to grow and generate revenue and continue to increase that revenue. The company will grow if they have a product or service that is in demand and it has good management to steer it.
