Setting a Limit sell order @ high PPS.....
I read it somewhere that many believe that setting a high limit price (or putting in any shares bought in a cash account into limit sell order for that matter) prevents brokers from using your shares for shorting. Supposedly, they can't borrow your shares if they're locked in a limit sell order (when bought with a cash account). There are others who I've seen question the validity of that theory. And there is also the supposed fact that brokers aren't allowed to short penny stocks. Don't know if that's some brokers, or all brokers.
What are everyone's thoughts on that?
(Bashers and shorts need not respond, the question is certainly not for you, and we longs don't want to hear your BS answers).
The way I figure it, if there was truth to the "can't borrow locked shares" theory, and there were some brokers that can legitimately short penny stocks, then placing your shares in a high limit sell order would in theory be as effective as pulling certs, without having the associated drawbacks of pulling certs.
Beyond that, my logic would tell me that if all of the longs were to do that together, we'd create the illusion of a much higher share value to the MM's, and make it specifically known to the MM's the size of the share count that is flatly refusing to sell anytime soon. I think that would help the short squeeze too.
The way I see it, it certainly cannot hurt.
XXXXXX shares limit sell at $50.
Chase the rabbit, shorties.
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