Health Sciences Group Inc (HESG)

[VeronicaFox]

More wise than what? I went over this earlier today, but Once again - shorting on the OTC is negligible, one reason is due to maintenance margin. A good example is to short 1 million shares of HESG at $.0004 IF this junk could ever make it to $.0004. That will cost $400 for the principle and $2.5 million in maintenance margin. Depending on the broker, the interest and other fees will run 20% of your take home - IF you effectively short to $.0001. The gain is capped at 99.9%. So a whole $399 made off of that risk and all that money tied up for days and paying fees you end up with about $340. Shorting is quite the lucrative business in the sub-penny OTC… NOT!

FYI, the losses are Not limited, they are infinite.

Now, Have OTC securities been shorted? Yes but at insignificant levels and not on sub-penny junk. Most real Exchange-listed securities are often 10% - 40% short interest. But do feel free to provide a list of sub-penny stocks with over 1% short interest. Without significant FTDs one cannot claim shorting, nor naked shorting, nor abusive naked shorting. That is how it works.

Your quote appears to be referring to stocks traded on an exchange - FYI, the OTC is not an exchange. Best to know and understand the difference between the OTC and a real exchange. Astute traders are aware that they are not the same.

Not unusual for companies to be charged by regulators and if often happens at the behest of those who have large naked short positions

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