Can anyone explain Grey Markets and OTC Pink stocks to me?

I just know a lot about them. No debt, good market share and is increasing. They are expanding. Just good feeling about it. Just want to know about these markets.

I don't think the terms "dark market" and "gray market" are very well defined. There seem to be different ways people use those terms, but it usually boils down to individual people or firms selling assets to each other privately. I suppose somebody could refer to OTC quotation system markets this way, but I've never heard of that before. I do see on Wikipedia ( LINK) where OTC commodity futures trading is referred to as a gray market.

As for the OTC pink sheet markets, check out some interesting links:

SEC: LINK (explains OTCBBs, and that Pink OTC Markets, Inc. is regulated by FINRA, and not by the SEC)
SEC: LINK (discusses how Rule 15c2-11 information requirements might apply in some cases)
OTC legal compliance in general: LINK
usefulness of pink sheets for Canadian mining (for uranium, precious metals, etc.) stocks: LINK

A little bit of history on pink sheets as they relate to boiler room operations, from a SEC rule proposal from 1989 ( LINK):

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High pressure cold calls are the predominant means to locate customers used by "boiler room" operations active in the pink sheet market in recent years. These operations involve a concerted, high-intensity effort to sell over the telephone large quantities of little known, speculative stocks to any and all buyers. Salespersons are expected to make hundreds of cold calls per day, and are trained in high-pressure sales tactics frequently involving use of prepared scripts designed to elicit an immediate buy decision from the person called. These tactics usually focus on pink sheet stocks, often where the broker-dealer is the sole or dominant market maker and little information is available about the issuer.

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And finally, some basic "differences between" stuff that I always get confused about from time to time, even though I probably should understand it better...

What's the difference between an OTC and an exchange?
(See here.)
A big exchange like the NYSE or the CBOE serves as a private regulator that ensures the execution of trades at agreed upon prices, thus eliminating counter party risk. An OTC might just be a price quotation system where you get screwed if you agree to a deal with a counter party that then defaults on you. I imagine this isn't as bad for regular equity trades as it is for futures and derivatives, but you still have the small risk that you buy shares from somebody who ends up being bankrupt and not actually possessing the shares.

What's the difference between an exchange and a clearing house?
(See here.)
Exchanges actually guarantee trade execution through their own clearing house operations, but some OTC derivatives markets will require parties to go clear their trade through a 3rd party clearing house. I'm still a little fuzzy on how this works to be honest.

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And there is no such thing as a no sale call. A sale is made on every call you make. Either you sell the client some stock or he sells you a reason he can't. Either way a sale is made, the only question is who is gonna close? You or him? Now be relentless, that's it, I'm done.

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They say money can't buy happiness? Look at the fricking smile on my face. Ear to ear, baby.

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Anybody who tells you money is the root of all evil doesn't fricking have any.

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Hey Bro, you are obviously pretty savvy when it comes to investing... I think Russian, you, and a few others are the go-to guys, but what dumbed down readings would you suggest for someone just starting to fully get into investing and playing in the market?

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Well thank you sir.

The first books any serious investor should read is "The Intelligent Investor" followed by "Security Analysis" by Ben Graham. Probably the 2 most important books ever written on the subject of the stock market.

Then read:
"The interpretation of Financial statements"
Joshua Kennon
"One Up on Wall Street"
Peter Lynch
"The Little Book of Common Sense investing"
John C. Bogle


The best piece of advice I could give on this subject is what Sir John Templeton said when he was asked "What is the secret to investing?". He folded his newspaper, and stared into Tony Robbins' eyes, and said "DO IT".

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EDIT: Also, somebody on this board really ought to put together a "Steps to Doing Fundamental Valuation for a Company's Shares" thread one of these days. We're due for that imho fwiw imo JaCoby-is-a-beast fyi btw.

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I seem to have lost the link but anyone out there can actually take Aswath Damordoran's "Valuation" class that he teaches at NYU.

He makes the entire thing available for free via iTunes, there is no school credit involved obviously, but he is a very engaging teacher and it is a really neat way to stay sharp on things.

Just search for it in the "ITunes U" app, it would a make a great resource for the people who come here often looking for readings, etc. You can take his Corporate Finance class as well.