Posted On: 01/05/2015 11:14:14 AM
Post# of 39368
Grey Sheets Trading
Should be Avoided
Grey Sheets, also spelled "Gray Sheets," and also known as the "Gray Market" is another category
of OTC stocks that is completely separate from Pink Sheets and the OTCBB.
The differences are as follows . . .
Unlike other financial markets,
• No recent bid or ask quotes are available because no market makers share data or quote such
stocks. There is no quoting system available to record and settle trades.
All Grey sheet trading is moderated by a broker and done between consenting individuals at a price
they agree on. The only documentation that can be publicly found regarding the trades is when the
last trade took place.
• No SEC registration and little SEC regulation. Regulation of Grey Sheet stocks takes place mainly
on a state level. Unlike Pink Sheets, these stocks have no SEC registration to possess a stock
symbol or to possess shares or trade shares of that stock.
• Such penny stocks, similar to Pink Sheets, are not required to file SEC (Securities and Exchange
Commission) financial and business reports.
• These stocks may not be solicited or advertised to the public unless a certain number of shares
are qualified to be traded publicly under 504 of Regulation D.
• Extremely Illiquid. Gray sheet trading is infrequent, and for good reason... Difficult to trade, not
advertised, difficult to follow the price, the least regulation possible, hard to find any information on
the stock, very small market cap, little history, and most such stocks do not yet offer public shares.
The lack of information (bids, history, financial reports) alone causes most investors to be very
skeptical of Gray Sheets and avoid them altogether. Grey sheets trading is rarely made by
Extraordinary Investors.
• Shares of such penny stocks are privately held and restricted from being sold publicly unless such
company files a 504 of Regulation D and meets basic qualifications; for instance, have a concrete
plan of operation, and a certain number of private stocks being held for at least
Should be Avoided
Grey Sheets, also spelled "Gray Sheets," and also known as the "Gray Market" is another category
of OTC stocks that is completely separate from Pink Sheets and the OTCBB.
The differences are as follows . . .
Unlike other financial markets,
• No recent bid or ask quotes are available because no market makers share data or quote such
stocks. There is no quoting system available to record and settle trades.
All Grey sheet trading is moderated by a broker and done between consenting individuals at a price
they agree on. The only documentation that can be publicly found regarding the trades is when the
last trade took place.
• No SEC registration and little SEC regulation. Regulation of Grey Sheet stocks takes place mainly
on a state level. Unlike Pink Sheets, these stocks have no SEC registration to possess a stock
symbol or to possess shares or trade shares of that stock.
• Such penny stocks, similar to Pink Sheets, are not required to file SEC (Securities and Exchange
Commission) financial and business reports.
• These stocks may not be solicited or advertised to the public unless a certain number of shares
are qualified to be traded publicly under 504 of Regulation D.
• Extremely Illiquid. Gray sheet trading is infrequent, and for good reason... Difficult to trade, not
advertised, difficult to follow the price, the least regulation possible, hard to find any information on
the stock, very small market cap, little history, and most such stocks do not yet offer public shares.
The lack of information (bids, history, financial reports) alone causes most investors to be very
skeptical of Gray Sheets and avoid them altogether. Grey sheets trading is rarely made by
Extraordinary Investors.
• Shares of such penny stocks are privately held and restricted from being sold publicly unless such
company files a 504 of Regulation D and meets basic qualifications; for instance, have a concrete
plan of operation, and a certain number of private stocks being held for at least
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