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Risicare

06/16/12 4:37 PM

#75049 RE: MrDemas #75043

For your 5000$ you could short a whopping 2000 shares and possibly make not even enough to cover commissions. Reg T requires 2.50 per share for margin as a minimum. So it is not economically feasible to short low penny scams like this one. After the 2.50 per share there is likely a borrow fee as well. So putting money in a savings account is far more profitable. That is why the real short numbers (the biweekly ones) are most always next to zero on even the most obvious penny frauds.
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Joey Coberly

06/16/12 6:14 PM

#75060 RE: MrDemas #75043

All brokers are not the same, maybe you should do some DD