Because there are no minimum standards, investors are not as protected as they are if they buy stocks on the NASDAQ and NYSE.
Employer Compliance and share scheme support We advise a NYSE listed company on the global stock option plan and SAYE scheme for UK employees.
Penny stock companies listed on pink sheets do not have to file with the SEC like companies listed on the NYSE and NASDAQ.
The NYSE, for example, will de-list a stock if the company does not meet these standards.
Forbes and Barron's recommend Global Penny Stocks, a site that selects penny stocks that trade on the AMEX, NYSE and NASDAQ for less than $5.