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Re: tarballmonger post# 18499

Thursday, 03/20/2014 7:58:16 AM

Thursday, March 20, 2014 7:58:16 AM

Post# of 144814
Almost no broker will let a retail investor short an OTC stock. The only one I know that will is located offshore and their margin requirements are ridiculous. And my son-in-law has worked on Wall Street for about 25 years, currently at one of the big houses, and he laughs everytime I have ever mentioned shorting a penny stock. He says, even if you could short it, no sane person would ever short such a stock because of the huge upside that could wipe you out. IMO, this is why the one broker that allows OTC shorting has such huge margin requirements. I think they want you to have $2.50 in cash in your acct for every share you want to short.

And yes, these boards are always blaming shorts for a decline in their favorite stock. It is just plain ole selling.
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