How do I buy a pink sheet stock

November 4, 2009 8:10 AM

How would I buy stock in Hyundai?

Hyundai is listed as a pink-sheet stock, symbole HYMLF. Can I buy this stock? If so, how?

posted by jefficator to Work & Money (3 answers total)

Best answer: Do you have a broker (Schwab, eTrade, etc.)?

They can tell you how to buy pink-sheet stocks.

Note that pink-sheet stocks are often much riskier than OTC and exchange-traded stocks and much less liquid.

Since the parent company is a Korean company you may want to see if Hyundai has ADRs (American Depository Receipts) trading on an American stock exchange, or, if you want to get really adventurous, try to buy shares on Seoul's exchange.
posted by dfriedman at 8:57 AM on November 4, 2009

If you have to ask this question on Mefi, you probably shouldn't be buying any pink sheet stock. Not trying to be a PITA, but pink sheet stocks are a very good way to lose a lot of money quick.
posted by COD at 10:00 AM on November 4, 2009

Best answer: People who are on here who are telling you Pink Sheet stocks are risky are just parroting some silly line someone told them. Yes true pink sheet stocks are absurd and no one should be buying them - but this is actually an unlisted ADR. Hyundai Motors is a real business not some pump and dump scam. In order for Hyundail Motor to list their ADR on the NYSE or NASDAQ they would have to submit 20-F's to the SEC - which is a very meaningful cost - so lots of foreign companies avoid them. Your broker should be able to help you get the shares off the pink sheets - but it will be a hassle.

I don't know which US retail brokers offer trading in Seoul. I would imagine the very big ones do, but maybe not the discount brokers.
posted by JPD at 12:17 PM on November 4, 2009