Pink Open Market: risks, Caveat Emptor and avoiding scams

Guide to the Pink tier: penny stocks, pump & dump, shell companies and red flags for retail investors.

Pink Open Market has the lowest disclosure requirements on OTC Markets. Most sub-$5 penny stocks trade here with irregular volume. Main risks: aggressive promotional campaigns, frequent reverse splits, shell companies with no real operations, and Caveat Emptor flags on otcmarkets.com. Warning signs: volume spikes without verifiable news, vague press releases, frequent ticker changes, management with a history of failures. If you cannot explain the business in two sentences and find verifiable SEC filings, do not invest. Use limit orders and minimal position sizes. Always check the Pink profile on otcmarkets.com.