Up Stock Exchange. It is good to know that the “up stock exchanges” typically refers to the AMEX, NASDAQ, and NYSE. The amount of respect given to each exchange typically reflects the difficulty to maintain or obtain a listing on the given exchange. It is for this reason to typically distinguish the “lower exchanges” to primarily include the Pink Sheets and the OTCBB (also known as the Over-The-Counter Bulletin Board). These two exchanges are the most lenient in regards to listing standards and listed companies are often subject to loose regulation. The Pink Sheets are recognized to be the most dangerous of all exchanges, infamous for its frequency of corrupt individuals and publicly-traded companies. With no requirement to file with the SEC, traded companies on the Pink Sheets have often been characterized with pump-and-dump tactics which include exaggerated (or false) press releases and hefty periods of dilution. Spam mail advertisements that mention companies with share prices less than $1 are typically solicitations for companies trading on the Pink Sheets (.pk) and OTCBB (.ob). Yet out of the two exchanges mentioned, the OTCBB holds more respect than the Pink Sheets with their requirement of audited financials in order to be listed.
The up stock exchanges typically hold relatively stable companies that can serve as viable investments. The low stock exchange typically hosts start-up and de-listed companies (from the upper exchanges) that wish to enter the capital markets. The lower exchanges are notoriously more dangerous to browse, but often manage to tempt prospecting investors looking for low-priced start-ups with potential in which to invest.
