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Re: Mr Wowza post# 53676

Monday, 11/05/2012 11:59:51 PM

Monday, November 05, 2012 11:59:51 PM

Post# of 167964
You and I will have to disagree about shorting - the average investor can't or it is extremely difficult to short a penny stock - the margin requirements are just cost prohibitive. You have to have $2.50 margin per share to short a stock under $2.50.

If you want to short 500,000 shares of a stock at $0.004, you have to have $1,250,000 in your account, and 500,000 shares at $0.004 is only $2000.

The good thing is you won't get a margin call unless it gets over $2.50.

But, if you look at any pump and dump all you read about is how everyone is shorting the stock - it is much more myth than fact.

IG