"They are listed on the so-called Pink Sheets, an electronic quotation service in which brokers posting quotations to buy or sell stocks are not required to investigate the background of the companies."
Should pink sheet even be legal?
I think they should be legal, but maybe only for accredited investors with high net worth. There are a lot of legitimate companies traded on the pink sheets that are too small to afford the probably millions of dollars of overhead just to keep their paperwork up to date with the SEC.