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Long Squeeze

   Also found in: Wikipedia 0.01 sec.
Long Squeeze

What Does Long Squeeze Mean?

A long squeeze, which involves a single stock, occurs when a sudden drop in the price of that stock leads to further selling, which pressures stockholders to sell their shares to protect themselves against a dramatic loss. Long squeezes are most likely to be found in smaller, more illiquid stocks; a few determined or panicked sellers can create unwarranted price volatility in a short period.

Investopedia explains Long Squeeze

Short sellers can monopolize the trading in a stock for a brief period, creating a sudden drop in price. The main reason long squeezes are so rare is that value buyers will step in once the price falls to a point that is deemed too low and bid the shares back up. A rapidly falling stock that is still fundamentally sound usually is seen as a “value” play, but a rapidly rising stock will be seen as increasingly risky with every upward tick.

Related Terms:
Demand
Fundamental Analysis
Short (or Short Position)
Long (or Long Position)
Short Squeeze



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For Northern Ireland, the inevitable long squeeze on UK fiscal policy will have implications for the resources available to the Stormont Executive.
 
 
 
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