The MM's that you don't normally see are the firms that allow shorting. HDSN, BMAS,RAFF, etc. The big firms Scottrade (nite), Etrade, TDA, etc. do not allow shorting of stocks under $5.
Not sure about this but if you are not with a big firm then I have been told that you should set a sell price at $2 for example. This is so that a trader cannot borrow your shares to short. By setting a sell price in much higher(so that your order doesn't go thru) your shares are set to be sold therefor a shorting trader cannot use them.
This is what I have heard. Im with scottrade so it doesn't matter for me.
Good luck!
G-
