OTC Markets Group designates certain securities as 'Caveat Emptor' and places a skull and crossbones icon next to the stock symbol to inform investors that there may be reason to exercise additional care and perform thorough due diligence before making an investment decision in that security.
The Caveat Emptor Designation may be assigned when OTC Markets becomes aware of one or more of the following:
Indicates companies that are not able or willing to provide current disclosure to the public markets - either to a regulator, an exchange or OTC Markets Group. This category includes defunct companies that have ceased operations as well as 'dark' companies with questionable management and market disclosure practices. Publicly traded companies that are not willing to provide information to investors should be treated with suspicion and their securities should be considered highly risky.
Designed for companies with financial reporting problems, economic distress, or in bankruptcy, that make the limited information they have publicly available. Companies in this category have limited financial information not older than six months available on www.otcmarkets.com or on the SEC's EDGAR system.
Companies may qualify for Current Information by making disclosure available pursuant to one of the following Reporting Standards:
The Pink Open Market provides brokers a platform for transparent trading and best execution in any security. There are no financial standards or disclosure requirements. A wide spectrum of companies are traded on this market, including foreign companies that limit their disclosure in the U.S., penny stocks and shells, as well as distressed, delinquent, and dark companies not willing or able to provide information to investors.
The Pink Market is for professional and sophisticated investors with a high risk-tolerance for trading companies with limited information available and limited regulatory oversight. Investors are strongly advised to proceed with caution and thoroughly research companies before making any investment decisions.
OTC Markets Group segments Pink companies based on the information they provide to investors.