Replies to post #5744 on Investor Help (NO Ihub questions)

[namangarg]

Help me understand all these terms ( OTC OTCBB OTCQX OTCWTF.. etc)
Hello everyone,

Started to look into penny stocks and OTC market and getting a little bit confused. I was hoping someone could clarify.

Ill sum up what I "understand".



Two types of markets: auction (NYSE nasdaq) and dealer ( OTC).

OTC markets are for companies that are either small, dont meet requirements for exchanges, or want to be traded with less parameters.



Penny stocks are stocks that trade at <$5, they can be from either new companies or bankrupting companies.

Penny stocks are traded OTC via: OTCBB or Pink sheets.

To trade via OTCBB company must be a little more reputable, file with SEC, and make financial statements public.

This makes companies that trade via pink sheets subject to more fraud, less reliable. Although some pinksheet traded companies are legit, and just lack the structure and size to file with SEC.



Now that all that has been stated,..



Since companies that register with SEC are traded via OTCBB what is the meaning of all those OTCQX etc?

I get that OTCQX, OTCQB, PINK are pretty much a way to state how legit a company is. todaygoldrate
i.e OTC QX, QB and pink are hierarchies of regulation.



However, are these markets on their own? or is it like a classification like bond ratings ( AAA, AAB etc)



Thanks for the help



EDIT: if possible please explain if the PINK just means pink sheets?