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Re: cntryjo post# 36289

Wednesday, 09/20/2017 1:54:28 PM

Wednesday, September 20, 2017 1:54:28 PM

Post# of 50265
the TRUTH about SHORTING penny stocks....99% of all securities transactions are cleared through the DTC ( depository trust corporation ) the DTC has rules in place that if a market maker or any brokerage firm participant ( which is every securities firm ... period ) shorts a stock trading under two dollars ( yes even a stock trading at 0.0001 )the DTC can segregate up to two dollars per share shorted of that firms capitol .. SO..if a brokerage firm and /or market maker decided to short RMTD at 0.0001 ...lets say for the sake of this discussion three million shares ...the firm would have shorted three hundred dollars worth of stock..so the maximum profit potential of the trade is three hundred dollars if they were to cover at zero...in order to attempt to make this $300 potential profit the firm would be risking having SIX MILLION DOLLARS of its capitol segregated and unavailable to conduct any other business..which would put 99% of the trading firms in America in a position where they could conduct no other business...in effect they would be "out of business "...do you think any rational firm would do that ???...and no brokerage firm /market maker can circumvent the rules of the DTC...NO MARKET MAKERS ARE SHORTING RMTD...IT IS ABSOLUTELY IMPOSSIBLE AS IT WOULD BE RISKING FINANCIAL SUICIDE TO DO SO ...