While stocks listed on the over-the-counter bulletin board (OTCBB) and the Pink Sheets, a privately held daily quote service (not a stock exchange), are known to be lacking in SEC filings, liquidity, and easily obtainable financial information (some have been delisted from major exchanges so brokerages actually make customers sign additional forms recognizing the added risk if they choose to trade in this niche), they actually are fully audited. In the last few years, Pink OTC Markets Inc., which owns these quotation systems, has aimed to bring extended transparency to this little known niche through the introduction of OTCQX.

The OTCQX, now a few years old and with 55 stocks listed, is a premium area of Pink Sheets -- which is littered with over 9,000 companies, most of which are penny stocks that don't trade very many shares or very often -- that provides a new level of disclosure not required outside of any major stock exchange, such as the AMEX, NYSE, or NASDAQ.

Over the counter (OTC) stocks interest me but the pink sheets appear to be too risky. What is it I find most intriguing about OTC stocks? They allow a person with more nerve than money to break into the stock market game. Pink sheets and penny stocks are historically the most risk prone investment vehicles. They're kind of like a trip to the casino. Going in there requires the investor to be prepared for the real possibility of leaving some money behind. OTC stocks on the other hand, provide a noticeably bit more security and some are actually stocks from very solid companies that are just unable to meet the price and volume requirements of the large stock exchanges.

The OTC Bulletin Board is the place to find out what OTC stocks are available. There are surprises on the OTC with some business names we all recognize. Others, I've never heard of. There's one thing for sure, it's a lively place where there is money to be made. If someone is entering the sport of stock trading, the OTC BB can be an excellent place to get started in my opinion.

OTC stocks require some special investment knowledge. Knowledge not in the sense of special analytical skills, but in the sense of having the desire to pick some winners and the patience to do some foot work. Making prudent investments in OTC companies, requires learning about them. There must be willingness to do some research about potential prospects. The more research done, the higher quality the knowledge will be. The trick to the sport is to find the companies that are ready to go upward. If the timing is right, then the possibility of actually making some dollars exists.

I'll be writing more about getting started with stock trading. Taking things easy may be my best bet. It's been an awfully long fourth quarter this year but let's just hang in there.