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Cornering the Market |
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Cornering the market Purchasing a security or commodity in such volume as to achieve control over its price. An illegal practice. Corner a Market 1. To own a significant enough amount of a stock to be able to manipulate its price. More specifically, an investor corners a market when he/she owns so many shares in a company that he/she can trigger a sell off if he/she dumps the stock. For this reason, persons and institutions owning or buying more than a certain percentage of shares in a company must register with the SEC and are subject to certain restrictions. 2. To have the greatest market share in a particular industry without having a monopoly. Companies that have cornered their markets usually have greater leeway in their decisions; for example, they may charge higher prices for their products without fear of losing too much business. Large companies, such as Wal-Mart or Microsoft, are considered to have cornered their markets. See also: Gorilla. Cornering the market. If someone tries to buy up as much of a particular investment as possible in order to control its price, that investor is trying to corner the market. Not only is it difficult to make this strategy work in a complex economic environment, but the practice is illegal in US markets. Want to thank TFD for its existence? Tell a friend about us, add a link to this page, add the site to iGoogle, or visit the webmaster's page for free fun content. |
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