Market Choices

Auction markets and dealer markets are the two kinds of markets in the investing world. Most investors are familiar with the auction market where, on an exchange, stocks and traded in transaction that is auction styled. But those not traded on an exchange is the over-the-counter or dealer markets. The transaction is done between dealers and the prices are not posted.
If the listing requirements cannot be met, they are called Over the counter investments or they can just choose not to be listed. Because of this, OTC is seen as a higher risk investment. Pink Sheets and over the counter bulletin board are the two players in the OTC market.
Based in New York and privately owned is Pink Sheets and it competes with the OTCBB. This is not new, it has been around for a long time but only since June of 2000 has it had the name Pink Sheets LLC. A trip to their website will show quotes for unlisted stocks along with others that fail to meet reporting requirement. For those looking for higher risk investments could take a look at what is offered on Pink Sheets.