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Pink OTC Markets Inc. is not governed by a securities regulatory authority. It is not a stock exchange. The Financial Industry Regulatory Authority (FINRA) and the U.S. Securities and Exchange Commission (SEC) regulate all Market Makers in Pink Sheets securities. FINRA's responsibilities include establishing rules governing the business conduct of its broker/dealer members; setting qualification standards for securities industry professionals; examining members for their financial and operational condition, as well as their compliance with appropriate rules and regulations; investigating alleged violations of securities laws; disciplining violators of applicable rules and regulations; and responding to inquiries and complaints from investors and members.

Many Pink Sheets stocks are Penny Stocks. Due to the high level of risk involved in investing in Penny Stocks it is "unlawful for a broker or dealer to effect a transaction in any penny stock for or with the account of a customer unless, prior to effecting such transaction, the broker or dealer has furnished to the customer a document containing the information set forth in Schedule 15G and has obtained from the customer a manually signed and dated written acknowledgement of receipt of the document." (SEC Rule 15g-2(a), Risk Disclosure Document Relating to the Penny Stock Market.)

How to Find Contact Information for an OTC-Traded Company

Pink Sheets issuers are not required to maintain current address or contact information with Pink OTC Markets. However, this information is available for many issuers. The Company Profiles on otcmarkets.com contain information about most Pink Sheets issues.

Investors should be aware that the accuracy or completeness of such information has not been verified by Pink OTC Markets or reviewed by any regulatory body. Investors should regard such information as merely a starting point for their own research in evaluating the investment potential of OTC securities.

Obtaining Financial Information on OTC-Traded Companies

Investors should always carefully review the financial information of issuers before making investments. The OTC market is buyer beware and is not suitable for unsophisticated or novice investors. Many Pink Sheets issuers are small companies with limited histories or are economically distressed. Filings made with the SEC pursuant to Sections 13 and 15(d) of the Securities Exchange Act are available to the public through EDGAR, the SEC's on-line database of company filings. Not all issuers are subject to these reporting requirements. Some Pink Sheets or Yellow Sheets issuers do not have any filing or reporting requirements with the Securities and Exchange Commission (SEC) or FINRA. For a detailed explanation of registration and reporting requirements and the exemptions available from those requirements, please see the SEC's Small Business Question and Answer Page.

Although they may not be required to make financial information available to the public, many Pink Sheets issuers do so voluntarily. You can search our Financial Reports Section to obtain financial reports any issuer has voluntarily posted via the OTC Disclosure and News Service.

Pink OTC Markets' Policy Regarding Caveat Emptor and Promotional Activities

Pink OTC Markets believes adequate current information must be publicly available during any period when a security is the subject of ongoing promotional activities having the effect of encouraging trading of the issuer's securities in the OTC market. As a matter of policy, when it has come to the attention of Pink OTC Markets that a security has been the subject of promotional activities and adequate current information concerning the issuer is not publicly available, Pink OTC Markets will label a security as "Caveat Emptor." Promotional activities may include spam email, unsolicited faxes or news releases, whether they are published by the issuer or a third party.

Generally, Pink OTC Markets will remove the Caveat Emptor designation once the security meets the qualifications for Current Information and Pink OTC Markets is satisfied that there is no longer a public interest concern, typically no sooner than 30 days. In the case of reverse mergers, Pink OTC Markets will remove the Caveat Emptor designation upon qualification for Current Information or, for SEC filers, with the submission of a super 8-K, with no 30 day minimum.

During the time it is labeled Caveat Emptor, any stock that is not in the Current Information category will also have its quotes blocked on otcmarkets.com.

Help make the SEC Expose Unsolicited Spammers and Stock Promoters

If you believe that you have been defrauded by a publicly traded company, broker, securities firm, investment advisor, or other securities market participant, visit our Contacting Regulators section to learn how to file a complaint with the appropriate regulators.

We encourage you to gain a thorough understanding of your rights as an investor and to investigate the background of the issuing companies, individual broker, and brokerage firm before you invest. Please visit the links below for more information on how to protect yourself or to obtain background information on your broker or brokerage firm.

  • Microcap Fraud -- Information about microcap fraud from the SEC.
  • About Your Broker -- Information about the FINRASM Public Disclosure Program, which allows investors to request a report of all disclosable information regarding an individual broker or securities firm, including instructions on requesting a report (either online, by phone, by fax, or by mail) and an explanation of the types of information that are disclosable.
  • How To Avoid Problems -- Information on ways to prevent potential problems and steps to take to resolve a dispute with a broker, securities firm, investment advisor, or other securities professional.
  • Invest Wisely -- Information on selecting a broker, understanding a new account agreement, several factors to consider before making an investment decision, red flags to watch out for, and where to turn if you encounter a problem.
  • SEC Rule 15g-9 -- This rule established several sales practice requirements for broker/dealers transacting in "penny stocks".
  • What Every Investor Should Know -- General information provided by the SEC Office of Public Affairs, Policy Evaluation and Research.
  • NASAA Investor Education -- Informational pages created by State Securities Regulators as a primer on the most common types of schemes, scams, and fraud about which investors and entrepreneurs need to know.