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ctp93

12/15/09 9:33 AM

#59652 RE: rayfer22 #59650

Shorting in the pinks is a popular battle cry. The truth is, shorting is perfectly legal. Nothing wrong with it. NAKED shorting is what is bad, and it is really very difficult to do.

For that matter, shorting in general is hard to do, and even moreso in the pinks. Before you can SHORT anything, there has to be shares available to short for starters, and that is not generally the case. Shares to short are nearly impossible to find on most pinks.

In addition to that, you have to have a substantial account with your brokerage firm to even qualify to short something. Not that many pink traders really have the means, knowledge, or shares available to do it.

9 times out of ten, the claim of shorting is complete BS.

In fact, you can see the short interest in a stock if you have the tools. EquityFeed is a popular L2 package and it has a great short interest filter.

ZENG had about a 34,000 short interest in it for some time. Lately it has had none. But even the 34,000 was insignificant relatively speaking.