Replies to post #117406 on Exxe Group Inc (AXXA)

[dc key]

Actually what used to happen is a venture capital company would lend money to a penny stock then the stock would give shares to the venture company to sell for repayment.The venture capital company would naked short the penny stock shares so they would get more shares at the lower price eventually putting the penny stock out of buisness and collecting on their shorts.Im sure some of you know this.

[rbtree]

Honestly I’ve never believed anyone is shorting penny stocks.

Correct. Risk/reward ratio is horrible. $2.50 share in margin is the killer.