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Re: maknak post# 175509

Friday, 11/17/2006 5:06:58 PM

Friday, November 17, 2006 5:06:58 PM

Post# of 311063
shorting penny stocks is illegal per SEC. There are several reasons;

1 Most penny stock will fail within 2 years.

2. Shorting a penny stock will put it on a fast track of failure. The valuation is so low that if a company gets flooded with short interest it will drive the price down sub-penny making it virtually impossible for companies to raise money through the sale of stock.

3. Pinksheet aren't regulated

It will be too easy to make money if you can short penny stock. It will destroy the market effectiveness.