Replies to post #68624 on North American Cannabis Holdings Inc (USMJ)

[TenKay]

Of course they do. Regsho allows it as part of their MM activities to create liquidity in the market. But their "shorting" activity is limited to positions that mostly last only seconds although they are allowed to hold it for up to 3 days before it becomes a fail. Those types of trades have little impact on the pps because they net out rather quickly. Margin requirements do not apply.

Retail shorting (and shorting for profit from proprietary accounts by broker/dealers) is entirely a different animal and is rare in the OTC precisely because of the margin requirements.

I hope that helps.

The reality is that if MM were not allowed to short for temporary positons to maintain market liquidity...trading in the otc would dry up in a heartbeat.