Replies to post #1498 on Koolaid Discussion Zone

[arvitar]

I've just learned about the 'Cellar Boxing Rule' on the FFGO board.

When I asked how it is possible to make money shorting a stock that trades at $0.0001, I received this answer: "They have made their money. In order to keep it they must keep the stock cellar boxed."

Can anyone explain the purpose of this rule to me and how it works?