General Discussion Topics, page-133106

"Pink sheets" is an outdated term used to describe stocks that trade over-the-counter (OTC) rather than on a major U.S. stock exchange. These companies cannot or do not want to meet the requirements for listing on a major U.S. stock exchange like the New York Stock Exchange (NYSE). They could be too small, foreign, or choose not to file the necessary paperwork with the Securities and Exchange Commission (SEC) and avoid all the extra costs that entails.

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"The term "pink sheet" arose as price quotes for these unlisted stocks used to appear on pink-colored sheets of paper. These securities, the majority of which are viewed as highly speculative, are now subject to more regulation. They also go by a different name. The pink sheets were officially renamed Pink OTC Markets in 2008 and then OTC Markets Group in 2011. However, the colloquial term is still widely used."1

OTC Markets. "Pink Sheets LLC Announces Name Change to Pink OTC Markets Inc."