Yellow Sheets provide daily updates on non-NASDAQ bond opportunities, allowing stockbrokers to inform clients of a broader range of investment options. Originally created by the National Quotation Bureau, they are still produced today by Pink Sheets, LLC in both hard copy and electronic formats.
Produced since the early years of the 20th century, the yellow sheets help provide a daily flow of information on the state of corporate bond prices to brokerage firms in the United States. Originally created by the National Quotation Bureau, Yellow Sheets are still produced today by the revamped NQB organization, which is known today as Pink Sheets, LLC.
The value of yellow sheets becomes apparent when it is understood that most bonds issued by corporations are traded over the counter. However, not all bonds that are outstanding meet the basic standards needed to be listed on the NASDAQ National Market or the NASDAQ Small-Cap Market. The yellow sheets help provide daily updates on those non-NASDAQ bond opportunities. Therefore, the yellow sheets allow stockbrokers to keep clients informed of a broader range of investment options, which in turn increases the chances that investors will give proper consideration to these corporate bonds.
The yellow leaves were called that for a simple reason. In 1904, the National Quotation Office devised the concept of providing information on stocks and bonds that was not readily available from another source. To keep the process simple, it was decided to color code the communications sent to runners who subscribed to the service. For the actions, the decision was made to print the information on sheets of pink paper. Bond information would be distributed on yellow paper.
Hard copies of the yellow sheets are still distributed today to subscribers who prefer that medium. However, it is now possible to receive yellow sheets in electronic format, either as an HTML-formatted email or as a link to the former National Quotes Office website. Modern Pink Sheets, LLC also allows subscribers to access the data through their website directly. As in previous years, the yellow sheets are updated daily, allowing investors and brokers to learn about investment opportunities that would be difficult to locate through other means.
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