DD Support Board and Research Team

[1manband]

The obvious answer is to get rid of the Pink Sheets altogether and require all public companies to be fully reporting to the SEC. In this day and age, there is absolutely no legitimate excuse for a public company to not be fully reporting. A lot of Pink Sheet companies hide behind the excuse that it costs too much and takes too much effort, but these are the exact same companies spending hundreds of thousands, if not millions, of dollars on stock promotion. Considering that a small fully reporting public company can meet their SEC reporting requirements for a surprisingly small amount which is a tiny fraction of what many of these companies routinely spend on stock promotion, that excuse rings very hollow.

Thankfully, I think a lot of investors have caught on and are beginning to avoid non-reporting pink sheet companies altogether. All you have to do is look at the price action to the upside on a stock when they announce they are becoming fully reporting, and the price action on a stock when they deregister from SEC reporting. I have seen stocks fall by 70+% in one day when they file a Form 15 - real investors don't want to hold non-reporting companies, while they absolutely want to buy fully reporting companies as that is viewed as the mark of a serious company.

This wouldn't eliminate all fraud, of course, but it certainly would immediately wipe out a huge portion of it. As well as making the remainder much easier to catch and prosecute.