Received 1 Karma
mudit1234 Jan 31, 17 9:20 PM
whats the 2.50 share rule?
SafeTrades Feb 01, 17 8:16 AM
Basically, to find out the maximum possible shares you can short for a stock under 2 dollars and 50 cents, you would calculate the number of shares as if it was 2.50. So if you were trying to short 100 shares of a stock underneath 2.50, you must have at least $250 even if the final transaction price could be less than 2.50. Tim has talked about it but it is just another way to keep short sellers from blowing up.

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