US PINK MARKET PROFILE:

The development history of the U.S. capital markets is very long, the initial stock trading circulation by over-the-counter (OTC), so the OTC market is the most ancient in the capital market, the oldest of the securities market, can say today's all kinds of stock market is developed by the OTC markets, the OTC market in the United States has a history of more than two hundred years. Even in America, where capital markets are highly developed, OTC markets are alive and well. The pink single market in the United States is the primary stock market in the OTC market.
The pink sheet market was established in 1904 by the National Quotation Bureau. Before OTCBB was created, most over-the-counter securities were quoted on the pink single market. The market regularly produces publications for subscribers, publishes quotation information of various securities traded off-exchange, and provides securities quotes to all customers after the end of daily trading, making it easy for securities brokers to obtain market quotation information and thus connecting market makers scattered across the country. The establishment of pink single market effectively promoted the standardization of the early small-sized stock market, improved the efficiency of the market, and solved the problem of information dispersion that has long troubled the small-sized stock market.
After the establishment of OTCBB market in 1990, a part of high-quality pink single market shares were transferred to OTCBB market. After the securities and exchange commission asked OTCBB companies to provide regular financial reports in 1999, some OTCBB shares returned to the pink single market for trading. So far, more than 4,100 stocks have traded on the pink single market.

THE EMERGENCE AND DEVELOPMENT OF PINK SINGLE MARKET

The pink sheet market development has experienced several stages, before 1904, the national distribution of many over-the-counter market, due to various markets are spread all over the country, information isolation between each other, no unified management and statistics, brokers and client it is difficult to a comprehensive understanding of some kind of stock price and transaction situation, and I don't know whether to get the best offer. In order to solve this problem, in 1904, engaged in the printing and publishing business of private company (National price Bureau National Quotation Bureau, NQB) to provide quote service brokers and investors in the United States, every day with pink paper print published more than 10000 kinds of over-the-counter stocks and more than 5000 kinds of bond prices, volume, etc., and will offer a variety of securities information regularly made into publication printing concurrent to the country, so called the pink sheet market. It wasn't until 1968 that the NASD decided to create the NASDAQ, a private company called Bunker Ramo, to do the job. On February 8, 1971, the system was officially launched and more than 2500 stocks with the largest size, performance and growth were selected from the pink single market for quotation trading. In 1990, NASDAQ stock market established OTCBB market. Due to the advantages of its national electronic quotation system and no restrictions like pink single market quotation, "no disclosure is mandatory", a large number of pink single market quotation stocks were transferred to OTCBB market quotation. Since January 1999, the securities and exchange commission (SEC) has overhauled the OTCBB market, requiring companies bidding in the OTCBB market to provide regular financial reports or be removed from the OTCBB market. As a result, a large number of shares quoted in the OTCBB market have returned to the pink single market quotation. After a year of consolidation, OTCBB's stock quotes dropped from more than 6,600 shares to more than 3,300 shares, while the number of pink single market quotes continued to increase, to 7,821 pink single market quotes in September 2005, including 4,782 in the pink single market alone and 3,039 in the double quotation of OTCBB. In September 1999, the pink single market introduced the web-based electronic quotation system based on real-time quotation, which improved the market efficiency. In June 2000, the information website (www.pinksheets.com) was established to provide the information of all quotation securities, and the pink single market entered a new stage of development.

PINK SINGLE MARKET FEATURES

The pink single market is the primary form of quotation for OTC transactions in the us. The broad us OTC markets include NASDAQ, OTCBB and pink single markets, in order of their listing requirements: NASDAQ, OTCBB and pink single. The pink sheet market is neither an SEC registered stock exchange nor an NASDAQ OTC transaction, but is owned by an independent private agency, Pinksheets LLC, with its own independent automated quotation system, OTCQX. The function of the pink single market is to provide tradable quotes for stocks that choose not to list on the exchange or NASDAQ, or are not eligible for listing. Unlisted Securities are listed on the pink single market, including:
Securities that have been delisted from the NASDAQ stock market or from an exchange because they no longer meet the listing criteria;
Securities backed from OTCBB to pink single market to avoid becoming a "reporting company";
At least one other securities market maker is willing to quote for it.
The pink single market, like other OTC markets, USES marketmakers. Only NASDAQ market makers registered with the SEC can create a market for stock quotes on the pink single market. There is no direct connection between the quotation system and the stock issuer. Instead of applying for listing and quotation in the pink single market, the securities issuer makes quotation through the market maker. Market makers may also quote prices on pink sheets without the knowledge or consent of the issuer.
There is no special listing standard requirement for pink single market quotation. As long as the market-maker fills in a 211 form that truly reflects the latest situation of the issuer and submits it to the market for review, it does not require the financial status of the issuer to be examined. The pink single market is the only securities exchange in the United States that has no financial requirements for listing and does not require regular and irregular disclosure of information by issuers. If the market maker has already quoted the securities in another market, there is no need for any other conditions. The market maker can contact the pink single market and ask for an immediate quote in the pink single market. That is, securities that meet the listing conditions of other markets can be quoted here without pink single market approval.
The pink single market is simply a quotation service that does not offer automatic dealmaking or carry out automated trading orders. It is not an issuer listing trading system, there is no listing standards. Therefore, it is not subject to the regulation of SEC registration requirements, and it does not have to submit financial information and other regular company documents to SEC. There is no requirement for disclosure of information. Issuers are quoted on the pink single market at no cost. The market-maker pays a small monthly fee for quoting securities.

PINK SINGLE MARKET REGULATION

The pink single market is not a stock exchange. It is not regulated by the securities regulator, as long as the listed company's quotes are published at the end of each day's trading. But NASD regulators (NASDR) and the SEC would tightly regulate all market-makers of securities in the pink and yellow markets. The contents of its supervision include: establishing rules to regulate market-maker's behavior to control market-maker's business behavior; Establishing qualification standards for securities practitioners; Check the financial and business status of the members at any time, and whether they violate relevant rules and regulations; Investigating securities violations; Using relevant laws to punish violators; Respond to investors and complaints, etc.
By known, because the pink requirements of the single market price is very low, on the market offer many of the securities are Penny Stock (Penny stocks), and information is not complete, not timely information disclosure, the investment risk is very big, is the smart well-informed investors provides tremendous opportunities for investment, and potentially great investment risk. The pink sheet market is dominated by activist investors and venture capitalists who like to take risks.

MAJOR DIFFERENCES BETWEEN THE PINK SINGLE MARKET

AND NASDAQ AND OTCBB MARKETS

Both the NASDAQ and OTCBB markets are regulated by the national association of securities dealers, which regulates them, and the pink single market is owned by an independent company. Shares traded on the pink single market have no financial or disclosure requirements. The pink single market is the only securities exchange in the United States that does not require financial disclosure.