Here is proof you can short penny stocks: <A HREF="http://www.interactivebrokers.com/en/trading/ViewShortableStocks.php?key=usxp&cntry=usa&tag=&ib_entity=llc&ln=" target="_blank">http://www.interactivebrokers.com/en/trading/ViewShortableStocks.php?key=usxp&cntry=usa&tag=...</A>