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Definition: National Quotation Bureau – NQB
A private company established in 1913 that provides investors information on stocks and bonds traded over the counter. NQB provides information such as the bid and ask prices and the market makers trading in them. As these stocks and bonds are over the counter, they are not required to be listed or satisfy listing requirements so they often come from small issuers. Its quotes are categorized into Yellow sheets and Pink Sheets. Yellow sheets are for bonds and Pink sheets are for stocks.
Pink Sheets are penny stocks that are not found on exchanges and may offer high growth potential to investors. But due to the inherent risk of varying levels, these stocks have most speculative nature. While many of the firms with pink sheets are legitimate, many of them lack the reliable data and track record. This raises the possibility of fraud and manipulation.
The Bureau provides real time prices and weekly review of prices. It is now known as OTC Market Group. It has almost 10,000 securities listed with share volume of 7.7 billion. OTC Markets Group's Open, Transparent and Connected financial marketplaces offer investors with the information required to wisely analyze, value and trade 10,000 U.S. and worldwide securities through the broker of their preference.