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sanbrunobaby

01/03/14 4:18 PM

#29 RE: asdfu099 #27

I am not referring to stocks in $4 price range, but to stocks under $.05 and $.01 in partcular.

The interesting thing about this urban legend of shorting penny and sub penny stocks is no one I know in industry take seriously yet retail investors seem to like the story . Tht is not only market maker I know.

Good test is what retail broker in US will short penny stock ? Everyone talks about shorting but then cant idenify broker who would short these stocks. The level of regulation of brokers and market makers in particular has grown signficantly the past few years, shorting stocks in particular past 3 days is more trouble than it is worth.

I think perhaps it is a conceptual issue- market makers make money of the spread and volume, so their approach much different than investors.

sanbrunobaby

01/03/14 4:21 PM

#30 RE: asdfu099 #27

I am unsure why a logical analysis of why market makers are not shorting penny stocks under $.05 has anything to do with whether government is honest. Look up FNRA rules and net working capital requirements for market makers, why on earth would market maker want to attract scrutiny in this day and age.

As far as US government there are a lot more dishonest and corrupt governments out there, I worry more about the inefficiency of this behemoth government we have now.