The Markets
Small cap shares trade on the NYSE, Amex, Nasdaq, OTC-BB, and Pink Sheets. While there are fewer companies on the higher level exchanges, such as the NYSE, that trade for pennies, there are in fact a few. The Amex and Nasdaq have their share as well, but again, it is the minority compared to the more common Blue Chip and large cap equities which they house.
The OTC-BB and Pink Sheets host the majority of micro cap equities, and the majority of listed companies on their exchanges are sub $5. The expenses, listing requirements and regulations to be on the OTC-BB are much higher than that of the Pink Sheets. As a result, the caliber of companies is much greater on the OTC-BB than those traded on the Pink Sheets. In fact the majority of investors, even those who regularly deal with speculative equities, will not even trade in Pink Sheet companies.
The OTC-BB and Pink Sheets host the majority of micro cap equities, and the majority of listed companies on their exchanges are sub $5. The expenses, listing requirements and regulations to be on the OTC-BB are much higher than that of the Pink Sheets. As a result, the caliber of companies is much greater on the OTC-BB than those traded on the Pink Sheets. In fact the majority of investors, even those who regularly deal with speculative equities, will not even trade in Pink Sheet companies.
