Again, what is being described is NOT a “penny for the lot” transaction. Once again, “penny for the lot” is merely purging a security from an account at a complete loss to offset capital gains.
In "penny for the lot" transactions, a brokerage will buy its client's worthless stock for about a lowly penny. This creates the transaction and the paperwork that the IRS needs before there is a write-off attempt. Here again, a good stockbroker can help.