Replies to post #74385 on The Question and Answer Board (IHUB)

[Capitalist]

whoops, that's right. I was thinking of marginability; very low priced stocks are not marginable, and thus are not sources of collateral. They can still be shorted, but it makes little sense because of the huge relative margin requirements. Imagine shorting a stock at 0.005 when the margin requirement is 0.505? LOL