Replies to post #86457 on Starfleet Innotech Inc (SFIO)

[vndrmlng]

If I'm not mistaken:

1. Market Makers of OTC stocks can short against shares they may have in their inventory.

2. Convertible debt holders of OTC stocks can short against issuers that they hold loans of.

[CASonnenschein]

Yep! I thought the same

Brokers lend out your shares only if you use margin, however, I doubt people are shorting penny stocks especially sub-penny stocks, the charge is too expensive than the profit, that being said, I do worry about the "naked shorts" if it turns out NOT naked shorts, there's one reasonable explanation but I don't want to say it

CAS