no, there's no rule that says you can't short under $5 stocks. some brokerages / clearing firms won't allow their clients, but it's their decision, not a 'law'.
INET does not have to follow the up-bid rule. But the brokerage firm that uses INET does. So if your brokerage firm never tells INET to always obey the rule for their firms orders, then you as a client make out big time. However, your firm will be fined heavily if caught when they are audited. It is a feature they can turn on and off per the firms request.
i am new here. i 've heard that you can short sell the stocks no matter downtick or uptick on ARCA. is't that right?
for Nasdaq only (my experience is all listed) can you offer a stock short below the current best bid on Arca? I understood that the "bid uptick" rule applied. But the info in this thread contradicts this. Anyone?
You can "offer" a stock short at any time is my understanding. You cannot sell stock "long" that you do not own. The "uptick bid" vs. the "uptick trade" rule applies on OTC trades. Don
Be careful, I just checked with an official at Arca. Listed stocks are subject to the same uptick rule as the NYSE (uptick trade, zero plus). Naz stocks may be sold on downticks on Arca (according to Arca). Don