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Re: asdfu099 post# 27

Friday, 01/03/2014 4:18:33 PM

Friday, January 03, 2014 4:18:33 PM

Post# of 42
I am not referring to stocks in $4 price range, but to stocks under $.05 and $.01 in partcular.

The interesting thing about this urban legend of shorting penny and sub penny stocks is no one I know in industry take seriously yet retail investors seem to like the story . Tht is not only market maker I know.

Good test is what retail broker in US will short penny stock ? Everyone talks about shorting but then cant idenify broker who would short these stocks. The level of regulation of brokers and market makers in particular has grown signficantly the past few years, shorting stocks in particular past 3 days is more trouble than it is worth.

I think perhaps it is a conceptual issue- market makers make money of the spread and volume, so their approach much different than investors.

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