Replies to post #100263 on World Surveillance Group Inc (fka WSGI)

[coastiretired]

One reason might be that an individual investor would have to provide a minimum $5 margin for each share of stock shorted. How many investors are willing to tie up $5 in hopes of making eight cents (provided the stock goes to zero.)

So who is actually shorting this stock? One clue could come from this language that is contained in many Globetel funding subscription agreements which Globetel IR has claimed isn't a form of PIPE funding:

Subject to compliance with applicable securities laws, the Subscribers may enter into lawful hedging transactions with third parties, which may in turn engage in short sales of the Securities in the course of hedging the position they assume and the Subscribers may also enter into short positions or other derivative transactions relating to the Securities, or interests in the Securities, and deliver the Securities, or interests in the Securities, to close out their short or other positions or otherwise settle short sales or other transactions, or loan or pledge the Securities, or interests in the Securities, to third parties that in turn may dispose of these Securities.