Many investors are leery of OTC, or over-the-counter, stocks – and there are plenty of good reasons for that caution. OTC stocks often involve companies too small to be listed and traded on the coventional and better-known stock exchanges.
For many, stocks listed on the Pink Open Market are to be avoided, as it is often regarded as the province of thinly-traded, poorly capitalized firms that could not qualify to be listed on "The Big Board" or other, more reputable exchanges.