Verus International Inc (VRUS)

[shotsky]

If you think brokers will permit shorting stocks, identify one. You can't because they don't.
Why? Because brokerages require a margin account, and about $2.50 per shorted share in margin. So, for shorting 1000 shares, you would have to put up $2500, JUST to cover the margin. You can't spend that money, it belongs to the broker until you cover your short. At a $.01 value stock, if you bet it is going to drop by 10%, that would be $.001 drop. So, you are shorting that penny stock by betting it will drop 10% to .009. If you are right, you 'win' 1000 X .001, which is exactly one dollar. So, you put up $2500 margin to try to gain $1. Anyone see any logic there?
At the same time, you could use that $2500 to BUY the same stock, giving you 250,000 shares. If it rises the same 10% that you wanted to short by, it means you'd have 250000 X $0.011, which is $2750...
Now explain to us again why people would short penny stocks...if they could.