Grande-penny stocks can't be shorted in the US, so I'm informed. But they can be in Canada, Germany and overseas. past FTD's have been grandfathered in so the whole naked short rumor will never end. While we can't short penny stocks I've called TDA and they do allow some penny stocks to be shorted but not for retail Americans (short=sell at the high buy back at the low) but they wouldn't tell me which ones or allow purchase. They have shut off certain stocks for buys but amply allow sells - even contacting some to sell shares. TDA is an american and canadian company who uses ubss who is a known shorter and hedge fund fav. I could go on but this gives you some DD to research. I was in PAIV and sold the stock before TDA had the certs in hand even though they said I could buy and sell and that they did have the certs in hand. Long story short, they had me $750k short in a penny stock (that I paid $250 for). I had them recorded so they backed off but I heard some they forced into a short position IN A PENNY STOCK had to cover (buy out). FWIW