S swordking Jan 24, 2006 #1 Is it legal for a US resident to short penny stocks via an offshore brokerage? Is there any way for a US resident to legally short penny stocks? Or would I have to move somewhere miserable like the Cayman Islands to do something like that?
Is it legal for a US resident to short penny stocks via an offshore brokerage? Is there any way for a US resident to legally short penny stocks? Or would I have to move somewhere miserable like the Cayman Islands to do something like that?
L lescor Jan 24, 2006 #2 Shorting penny stocks isn't illegal. It's up to the broker to decide if they will extend you margin on a penny stock, since a short sale requires margin.
Shorting penny stocks isn't illegal. It's up to the broker to decide if they will extend you margin on a penny stock, since a short sale requires margin.
