Pink sheets

• "Pink sheets" refer to a daily publication compiled by the National Quotation Bureau (NQB) of bid-ask spreads for OTC stocks. Companies "on the pink sheets" (they switched to an electronic medium in 1999) do not need to meet minimum SEC requirements; they are therefore seen as more risky investments because of lower barriers to entry in the marketplace.
• Standard deviation of prices in a marketplace works as a stand-in for measurement of risk in a market. That is, over increasingly shorter terms, the risk of movement and the risk of large swings are both bigger on average in markets where returns do not cluster as well around moving averages.
• It is interesting to note, however, that appearances of risk are a function of time. Over time, using a buy and hold strategy, it can be very advantageous to own high-risk investments in a growth environment. It's this continued world growth that makes stocks, over time, create higher returns.