Kemiao Garment Hldg Group (KMGH)

[Until2020, formerly Until2017]

Can't short a penny stock, in general.

(1) In general -- penny stocks are very difficult to borrow

BECAUSE :

(2) PENNY STOCKS CANNOT BE USED AS COLLATERAL IN A MARGIN ACCOUNT ! ! ! ! ( Check it out ) And it is stocks pledged as collateral in a margin account THAT ARE BORROWED FOR SHORTING.

THAT IS THE WAY SHORTING WORKS, in general.

A stock that cannot be pledged as collateral, cannot be borrowed. Again, in general. If a stock is in a non-margin account, then the broker has to make a deal with the stock holder to lend the stock. THe broker has to pay for the privilege.

THERE IS MUCH TALK ABOUT SHORTING PENNY O.T.C. STOCKS, and most of it is false.

Study it.

Until