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Microcap & Penny Stocks : INFE ... Infocall another Sleeper -- Ignore unavailable to you. Want to Upgrade?

To: LegalBeast who wrote (741)	5/24/1998 1:34:00 PM
From: RocketMan	Respond to of 10343

BB stocks are shorted all the time. You can not do it as an individual through a reputable dealer, though. There are legal, quasilegal, and illegal ways this is done. MMs can do this legally for periods of time in order to provide liquidity. Canadian brokers can short and are outside of US laws, and US investors can set up quasilegal accounts through them and do the same thing. MMs can abuse the system and do naked shorting to drive the price down, then move it up and repeat the process as often as they want, squeezing money out of small investors. This is in the quasilegal/illegal area, and there was an article in last month's Business Week talking about that. The sec is starting to take action, but is hoping NASD can self police itself. Yeah, right.