Shorting penny stocks requires abnormally high margins. Investors need to tie up comparitively large sums of money just to hope it drops the few pennies to zero.
It is much easier and cost effective to short normal securities. Buying put options, for instance, requires no margins and a relatively minor amount of money.
One normal options contract allows an investor to control 100 shares.
I don't even know how to short stinky pinkies not interested.
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