Sunday, September 24, 2017 10:55:09 AM
Let me guess the information comes from the OTCshortreport - which reports short volume and not short interest.
You really need to research the trade cycle, margin accounts, the $2.50 rule and the difference between short volume and short interest.
Call your broker and ask to borrow 1 million shares of BMXC to short - he will ask if you have $2.5 million in your margin account (most penny stock investors have a cash account).
Then you have $2.5 million in dead money in your margin account and you only control $4900 in BMXC stock.
If BMXC goes to 0.001 you have made $3900 minus transaction and margin account fees but you have tied up $2.5 million while waiting for the price to drop to 0.001.
Here is a primer on the mechanics of shorting a stock - which certainly isn't illegal - but noobie investors post about shorting on every OTCM scam.
First, you have to borrow shares from your broker to short (and sell them on the open market) - then you have to buy the shares back at the lower price and return the borrowed shares to your broker. Let's say the price is $1 per share. So if you sold at market price you would receive $1 million.
If you brought the shares you owe your broker 1 million shares at $0.75 - that would be $750,000 - then you return the million shares to your broker and your profit is $250,000 minus margin and transaction fees.
If you look at the FINRA bi-weekly report you will find that in the 2 weeks prior to August 31st the short interest was only 3,868 shares and more importantly there was ZERO FTDs.
IG
"Straight Facts Homey!"
Recent BMXC News
- Kona Gold Beverage Inc. Signs Letter of Intent with Bemax, Inc. to Sell Kona Gold, LLC • InvestorsHub NewsWire • 08/07/2024 02:00:00 PM
- Bemax Inc. Positions to Capitalize on Industry Growth with New Improved Quality of Mother's Touch® Disposable Diapers • InvestorsHub NewsWire • 06/24/2024 12:00:00 PM
VHAI - Vocodia Partners with Leading Political Super PACs to Revolutionize Fundraising Efforts • VHAI • Sep 19, 2024 11:48 AM
Dear Cashmere Group Holding Co. AKA Swifty Global Signs Binding Letter of Intent to be Acquired by Signing Day Sports • DRCR • Sep 19, 2024 10:26 AM
HealthLynked Launches Virtual Urgent Care Through Partnership with Lyric Health. • HLYK • Sep 19, 2024 8:00 AM
Element79 Gold Corp. Appoints Kevin Arias as Advisor to the Board of Directors, Strengthening Strategic Leadership • ELMGF • Sep 18, 2024 10:29 AM
Mawson Finland Limited Further Expands the Known Mineralized Zones at Rajapalot: Palokas step-out drills 7 metres @ 9.1 g/t gold & 706 ppm cobalt • MFL • Sep 17, 2024 9:02 AM
PickleJar Announces Integration With OptCulture to Deliver Holistic Fan Experiences at Venue Point of Sale • PKLE • Sep 17, 2024 8:00 AM