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What Are Pink Sheet Stocks?

By Sam Swenson, CFA, CPA – Updated Jun 4, 2025 at 1:09PM

Key Points

  • Pink sheet stocks trade OTC, allowing investments in a broader range of stocks.
  • These stocks often lack financial transparency and can be highly volatile and risky.
  • Investors typically use limit orders due to the absence of buy/sell market orders for these stocks.
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