Stay in the investing game for more than an inning and you’ll eventually come across OTC stocks, or equity shares that trade in over-the-counter exchanges. Former InvestorPlace contributor Dan Burrows’ once wrote that pink sheets are like bad neighborhoods. Not all the residents are sketchy, but these places are where true criminals live, making you a target.
Still, the best OTC stocks have serious potential. To protect yourself, make sure to do thorough due diligence.