Naked Shorting-Hedge Fund & Market Maker manipulation? Message Board

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Microcap & Penny Stocks : Naked Shorting-Hedge Fund & Market Maker manipulation?

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To: Hawkmoon who wrote (3596)	7/22/2008 12:05:54 AM
From: rrufff	Read Replies (1) of 5034

I believe that is broker-specific. There are no mandates against shorting based on price although it's a popular misconception. The brokers with which most of us trade, particularly the online ones, have prohibitions against shorting OTC BB of any price, pinkies and under $5 (sometimes $4) stocks. The prime brokers, the full service houses and overseas brokers will make deals with their best customers to short. The bottom line is that unless you are a multi-million dollar account, you have to put up very large amounts to short relatively few dollars worth of stock. That's why it's become a game for the hedge funds. They have the money and the prime brokers want their business.

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