Can you short sell stocks that are trading below $5? My broker says that I can't.
A: Short selling can be very risky for both the investor and the broker. Brokers will often tell investors that only stocks above $5 can be sold short. Although this may be true for your particular brokerage firm, it is not a requirement set by the Financial Industry Regulatory Authority or the SEC.Most brokerage firms will have a "short list," which details all securities the firm allow...