1812 Brewing Company Inc (KEGS)

[VeronicaFox]

Hypothetically speaking, open a new trading account. Deposit enough to cover maintenance margin REQUIREMENTS. Buy 10M shares of KEGS @$.0001, thats only $1000, however Margin maintenance required is 25,000,000. Highest possible Gains are capped, losses are infinite. What astute trader would put up $25,000,000 - ALL AT RISK - for a possible maximum gain of $799??

Shorting is an inefficient way to make any amount of money. The short microcrap trade ties up possibly all of the maintenance margin subject to margin calls. Any Long NYSE stock positions taken, the long trade leaves plenty of cash for other trades.

IF they ever got rid of the margin requirements then, that would help anyone wishing to take a short position in the microcaps. But they are still subject to margin calls.

Everyone observes the numerous OTC P&Ds - High risk for a margin call being issued. Far higher risk due to the P&D games played.

And once again, the payoff is an extremely inefficient use of funds.