Zoro, shorting is a common practice on all the boards. Most of the bigger companies don't short sell stocks under $1.00 but dealers such as UBSS and NITE and some of the other prominent volume dealers in the pinks do so with wild abandon.
The SEC requires a short sale to be filled within 3 days. The problem comes about when the piggy back stocks can be quoted by the dealers who have enough clout (money) to manipulate.
For example, if I were to sell at the best sell 10MM at .009, then 10MM at .008, etc to .004, I would be averaged in at somewhere around .0065. Then, when news happens or the natural order of buy/sell/demand pushes the price back up to .009, I sell to the public at the sell price and other dealers buying in at somewhere over .0065.
Simple to do when you have billions to work with and these stocks only take a feww hundred thousand to manipulate.
Also, many of the shorts aren't filled for some time, thus increasing the float and also the volume. Also, the short seller has nothing invested and is essentially counterfeiting stocks and not using any money to pay for them, thus generating a large supply of short term investing cash. This can be swept and invested overnight for a nice safe return. We don't have the visibility in the pinks that we do on the boards. Shorts are recorded and published.
It just makes it hard on the small investor.
These are just things that you can find out from reading. There's nothing new here that I'm saying. Just go Google and read.
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