GM Sir! Reg. traders/investors like you & I can't short pennies (Well, it's not impossible...you just need million of $$$ to back it up)~ MMs, brokers, dirty SOB Clearing House, however, would have no problem doing it...MM- means market maker...& those SOB could short...buy etc. Shorting doesn't always mean the SOB would take your shares & sell sell sell...it has many diff. meaning. For ex: If 3 traders demand or want to buy POS DSCR at 29s ---but their brokers (ex. Eturd, Scotturd, Zecco, etc) don't have a large amount of shares to meet the demand (assuming there is only one seller, with little amount of shares to offer ...or the float is already locked or in the hands of many other traders) --- then playing by the rule, immediately, the brokers would have to instruct the MMs to carry out the buy orders (because the buyers are willing to buy on the current ask-price)~ Consequently, this would put the MMs/brokers on a short position...
Meaning: They would have to borrow from another trader (one with a margin acc.) to meet the demand...
If they buying continue on...then sometime the POS MMs/brokers will have to short (willingly) to hold the stock at a certain position...or try to drive down the PPS ...to scare traders...to donate shares to Shorting SOB~
- Go DSCR
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