Retail traders cannot short penny/sub penny stocks or else we retail investors would all be rich. Clearly easier shorting these stocks than waiting for the occasional gains. These stocks go down much more often than up.
So that's where MARKET MAKER MANIPULATION comes in and that's where NITE and CDEL come in.
MARKET MAKERS NITE AND CDEL DO NOT REPRESENT RETAIL INVESTORS. They are entities that are allowed to short, that's where your regulation issue is valid. Def not fair to the average retail investor.
Why the SEC/Government allows these entities to short is speculative but I think it's because they (nite/cdel) have so much money (which is how they absorb enormous amounts of shares) that they can easily cover when/if PPS rises.The individual retail investor doesn't have that kind of capitol.
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