SNM Global Holdings (SNMN)

[BayouBengals]

Margin Requirements

Brokers require investors to put up collateral to guarantee against potential losses in the form of margin requirements. Often times, brokers will require OTC investors to have $2.50 of margin per share to short a stock under $2.50, which can make shorting penny stocks very costly. For example, if an investor shorted 2,000 shares of a stock at $0.50, you have to have $5,000 in your account. All along, the maximum profit for this position would only be $1,000, if the stock went to zero.

Other than MMs doing their usual "long/short" thing to "make a market" (which is short for enrich thy-selves) & even if a private investor or group had the cajones...& bazillions required to make any real $$$...uhh...not the smartest move.

http://www.theotcinvestor.com/how-to-short-sell-penny-stocks-121/