Amarin Corp Plc (AMRN)

[KCSVEN]

I Googled it, says exactly what I stated already. People that think that if a stock falls below $5 means institutional investors have to sell are just wrong.

Many cannot trade OTC and pink slips but very few have restrictions on under $5 and even less have absolutes on under $5.

Margin requirements are different for stocks under $5 so there is pressure there, you can't list oginally for less than $5

The official SEC definition of a "penny stock" is an equity trading for less than $5 a share that is not traded on the listed markets of the NYSE, Amex, or Nasdaq, but on the bulletin board or the pink sheet

Mutual funds draft their own charters, and some choose to avoid stocks under $5 a share. However, they are not obligated to do so, except for fiduciary reasons. Many mutual funds specify that they will hold only stocks listed on the NYSE or the Nasdaq National Market. Furthermore, unless the fund explicitly specializes in small-cap/high-risk shares, holding penny stocks may be bad for business because they are perceived as an unwarranted financial risk for investors.

And on a positive note

It is more difficult to short stocks trading below $5 a share, since price is one of the factors the SEC uses to determine a stock's riskiness. As a rule of thumb — though this is just one criterion — stocks trading below $5 are "not marginable" and therefore not eligible to borrow or sell short.