ZRock---
The following is a post which I cut/pasted here for you and others to read---and comment if you wish--
In response to questions re: the shorting of SGLB stock, I think that first and foremost, investors need to put to rest this misconception that joe retail is shorting SGLB. Investors need to understand that SGLB is a penny stock. The notion that retail investors are shorting 10 cent stocks in any significant amounts that could impact the sp sits in stark contrast to the realities of the market. Retail investors shorting penny stocks is by and large a myth that can be found in Aesop's Fables in the chapter after the tale about "Float Lockdown".
But don't just take my word for it. Research the issue yourself. Talk to your broker. You will likely find out several things about shorting penny stocks, including these two points: (1) The maintenance margin required to short a stock like SGLB is massive, and is beyond what the vast majority of retail investors can afford in order to be able to short in any meaningful quantities; and (2) The difficulty that brokers encounter in even being able to locate sufficient enough shares of penny stocks like SGLB in order for joe retail to even be able to short even if they were willing to put up ungodly sums of money into lockup in a margin account.
I personally know (and I mean personally know, and not simply know as internet MB acquaintances) about a couple dozen investors who have the resources necessary to put up the requisite maintenance margin amounts to short penny stocks in meaningful amounts -- but NONE of them do it. They take long and short positions alright, but they NEVER EVER short penny stocks -- only larger cap stocks. Not only is the risk too insanely high to short penny stocks due to the common occurrence of penny stocks shooting up hundreds of percents in a blink of an eye, but any potential rewards are simply never worth it when you factor in the opportunity cost of having so much cash locked up simply to satisfy the maintenance margin requirement. In essence, not only is it generally cost-prohibitive for 99% of retail investors to short penny stocks, but the few that can afford to do so generally don't find it worthwhile to mess around with penny stocks.
CHEERS
