'Arrow335', TDAmeritrade and Scottrade has informed me that they do not short pennny stocks and that it was unethical and illegal. Now, I don't know what they based that on. Was it illegal based on company policies or SEC law? I don't know. I hope the account giving you the option to short the penny stock was not one of the above. I wish the current elections reveal a leader that was concerned in protecting the American investors and consumers from these stock market criminals.