I would say B. B. Is powerless to do anything

I would say B .

B. Is powerless to do anything about it

Like most CEO's, Steve can only watch in disbelief - up to a point - wondering how organized and pervasive the shorts are. I recently emailed him the link below even though it's rather presumptuous with his financial background. However, a lot of sophisticated CEO's have seen their companies decimated according to the SEC and FINRA. Both regulators have had their come-to-Jesus moments since 2008, but small companies, the backbone of America, are still being attacked by preventable greed.

http://americanmicrocapinstitute.com/featuredcolumn2.htm

Eat My Shorts!
A Naked Shorting Primer for CEOs.

Back to preventable greed for a sec. Nothing is going to happen until the root causes of legal and naked shorting are addressed, IMO.

Back to your question: why shouldnt investors short stocks ...

Glad to see you thinking like a crook because it may lead to some interesting research and conclusions.

The short answer is that you CAN'T because (A) your broker won't allow it and ( even if you can find shares to borrow, it will be prohibitively expensive.

Most retail brokers, TDA, eTrade, for ex., won't lend shares under $5. However, they have NO problem lending your shares to professionals for the sole purpose of shorting the bejeezus out of your stock. How do you (and CEO Steve) address that little conundrum?

Interactive Brokers is one of the few brokers that will allow you to borrow penny stocks, but get out your calculator; 'nuff said. At the moment, IB will let you borrow 250,000 shares of ICPA (they haven't made the switch to PNCH yet).

This is just for starters. We haven't even gotten to the toughest questions.

On a positive note, the fundamentals of IC Punch Media will prevail, IMO.

Onward.