
Originally Posted by
Siriusowner
It is mostly mutual funds... Magellan, Vanguard, etc... they are not allowed to trade penny stocks. Hedge Funds can trade SIRI, it depends on the manager, if he sees an opportunity he may short it or go long... Mutual Funds do not short stocks...
As a matter of fact penny stocks are so riskiy that some brokers even restrict new money - from you, from me or from everyone - to trade on them. They sometimes put time restrictions like 5 to 7 days before you can trade. This is to make sure you follow the stock that many days before you dive in... plus, some of them do not lend margin money to buy penny stocks.
Penny stock is one of the riskiest "investments" you can make... I can think of one riskier activitity you can engage only: parachute diving... and even that maybe safer. The stock market can damage you psicologically forever...