Hello Lowman
This is my 1st post here, I have been following other board of yourself Money 101 and found it vey useful.
I was going through posts of this board, then *shorting* took my attention.
what do think about reality of shorting in a penny stock under .05?
I searched about shorting quite a bit and found out that according to SEC rule, shorting a penny stock requires pledging 2.5$ per share. Many of the broker do not allow it, and those who do allow are required to ask for 2.5$ per share. I looked around to off shore brokers thinking, may be they are not bound to follow SEC rules, so they might allow it cheaper. I could only find one in Bahamas that allow it for 2$ a share but no cheaper.
Now I wonder, does not it make very unfavourable business proposition for either individual investor, or group or big capitalist to pledge so much money to short a stock under .05 and more so under .01
I would be waiting for your thoughts to improve my understanding of the issue.
Thanks for your time.
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