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[Penny Stocks] Red Sheets Discover Disclosure Once on a time on the planet of finance there have been three kingdoms probably the most widely recognized was also probably the most snobbish and richest its subjects had been affluent and recognized worldwide. Its full was NYSE (New You are able to Stock exchange) the actual king ruled happily over his topics. Every brokerage organization had a stock ticker to supply their customer with trade home elevators NYSE listed shares. The second kingdom wasn't so well away, it had less subjects and also the inhabitants were a lot poorer than individuals ruled by NYSE, the actual king was called AMEX (American Share Exchange). They might be classified as reduced middle class. Now the 3rd kingdom was the biggest of all, its subjects vary from middle class to inadequate, this kingdom had been ruled by OVER THE COUNTER (Over The Counter-top Market). Some from the subjects of OVER THE COUNTER were always seeking to migrate to NYSE or Amex to flee the stigma mounted on being a citizen of OTC. Some of the actual stock that previously traded in the actual Pink Sheets are popular today such as EDS and several new IPO, in addition to bank and insurance providers, but you additionally had stocks trading for any fraction of anything. If you wanted a cost on a OTC stock you'd call your agent who looked within the pink sheets to determine who the marketplace makers were, he'd get on the telephone to a market maker and get the person answering the telephone for a quotation, the person answering the telephone then gets the cost from a blackboard within the front of the area and give it towards the broker making the actual inquiry, this would take a moment. Market makers experienced a quote boy within the front of the actual trading room altering the blackboard whenever a trader yelled another price, this markets were great for 100 shares, In those times it was possible to purchase from one market maker in a price and chan ge and sell to a different market maker from higher price since the one market producer had no idea what the marketplace was unless he or she made a telephone call. So you usually found disparities in the buying price of a stock. Along came a royal prince named NASDAQ the actual NASD Automatic Quote System, which allow brokers to determine the price through computer, it gave the actual mean market (average market) not the very best price, but it had been a giant advance. These NASDAQ machine didn't provide live quotes you'd to keep upon pressing the enter key to be able to see the up-to-date quote. And eventually all of the better stocks had been gradually included about the NASDAQ systems leaving the greater obscure and unprofitable businesses to trade about the pink sheet. And again the NASD chose to sink the pink sheets even more into the property of obscurity through creating the OVER THE COUNTER Bulletin Board. The OTC Bulletin Board began not requiring much information in the issuer but progressively started requesting more info and now they have to have audited financial and should be reporting. All this remaining the pink since the only market as a whole disclosure darkness being the only real ones not needing the issuer to reveal its financial reviews. But on Feb 15, 2005 just a little daylight came to the pinks, on this very day a new plan was implemented, this policy demands issuers of recently traded securities to reveal adequate current information towards the investing public. . View this post on my blog: http://stocktips.valuegov.com/penny-stocks-red-sheets-discover-disclosure-once-on-a-time/