InMed Pharmaceuticals Inc (INM)

[lesgetrich]

There are a few brokers that allow you to short penny stocks but it's a dangerous game for the average investor since potential losses are unlimited (traders normally put a limit order for a sale if the price goes up suddenly).

Market Makers are allowed to short their own account and even borrow shares they don't have in order to keep a regular market but the SEC has tightened the regs on them in recent years to keep them from doing this solely for their own profit. Nevertheless people suspect that there are some unscrupulous players out there.

I don't think tying up your shares with a sell order does much good. None of us own enough shares to make a real difference and even if most ordinary investors did this there are still enough private, corporate, institutional and market maker shares out there for shorters to borrow.