The Question and Answer Board

[Jim Bishop]

Wish we could short them. I use TDW Canada, they don't allow shorting of anything under a buck, any market, anywhere.

Pennies can be shorted through some brokers but the margin and maintenance fees are nuts.

The Canadian Investment Dealers Association says:

Stocks under .50, market value PLUS FIFTY CENTS A SHARE.

Stocks over .50 just a flat 200% margin.

http://www.ida.ca/files/regulation/rulebook/rulebook_en.pdf

TD Ameritrade handily put their margin handbook on the web, they're even worse. Stocks under $2.50 maintenace is 2.50/share

http://www.tdameritrade.com/forms/ATI086.pdf