When a manipulated stock’s price declines, it has become common practice for penny stock issuers and their disciples to scream foul play and claim their company is the victim of a stock basher-naked short seller conspiracy, working with nefarious clearing firms to send their stock price to the triple-zero graveyard. These same issuers also complain vociferously about the purported “agenda” of the United States Securities and Exchange Commission (“SEC”) andDepository Trust Company (“DTC”) to wipe out penny stocks altogether by turning a blind eye to illegal short sale activities.
It has become common practice for issuers and some Stock Bangers, also known as stock promoters or touts, to point to the Threshold Security List–the “Reg SHO List”–as evidence of illegal short sale activity that supposedly explains their declining stock prices.
