Baristas Coffee Company, Inc. (BCCI)

[TenKay]

They are usually reluctant to to do this but Reg T allows it with the huge margin requirement...depends on the broker. Not sure about the offshore piece. I have heard that there may be some offshore brokers that do it without the huge margin requirement but I have no first hand knowledge. There are also some isolated cases of companies getting a listing on a foreign exchange (Eg. Berlin Boerse) in order to facilitate naked shorting...but those cases are rare...and in the past. The regs have changed significantly (there and here) since those examples.

But the myth of widespread NSS will continue.

The reality is, there is little to no retail shorting of penny stocks.