It was theorized that ONLY note converters could be shorting. The following quote is direct from Ihub. <br /> <br /> <blockquote><span style="font-size:90%">Quote:<hr/>On the NASDAQ, OTCBB, and Pink Sheets, market makers compete with each other by individually quoting the best bid and offer they're willing to execute a trade for on behalf of their firm or client. These market makers are required to maintain two-sided markets during exchange hours and are obligated to buy and sell at their displayed bids and offers. <b>They typically do not receive the trading advantages a specialist does, but they do get some, such as the ability to naked short a stock, i.e., selling it without borrowing it. In most situations, only official market makers are permitted to engage in naked shorting.</b></span><hr/></blockquote> <br /> <br /> Just information.