RxPC Inc (fka RXPC)

[Doubledownga]

Most Brokers in the US do not allow shorting under $5.00 but there are planty of places overseas that do. Frankfort Exchange is one that is notorious for it. The worst thing about this is the company being shorted may not be aware that they are even listed on that exchange. This happened with AMEP a couple of years ago. The CEO had to file a suit to get the company off the exchange. Then it showed up a few months later to be shorted again. They are not required to be on the SEC short list. Sometimes do not even have the shares in inventory....hence Naked Shorting. If it is a company with major financial diffulties they can be shorted out of existance and the shares never have to be bought back by the broker.