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Re: Value_Investor post# 1256

Monday, 10/09/2023 3:09:11 PM

Monday, October 09, 2023 3:09:11 PM

Post# of 1277
As I indicated in my post # 1254 I DO NOT short stocks under $1 a share.
I wait until the reverse split occurs and then I short it.

There is a $2.50 rule which means you have to have a margin account that can cover $2.50 for every share you short under $1.00. Some people call it a $2.50 rule while other say you need to have a margin account that can have 150% value of the share you are shorting.

I do not know all the details because I do not short shares under $1, but you can probably speak to your broker or a representative at your brokerage firm.
I do have a margin account and I do have capital ratios that allow me to short a predetermined amount of a company stock.
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