natural corner

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Natural Corner

A situation in which an investor achieves significant control over a company or its share price without intending to do so. This may occur, for example, when a single investor is accumulating a stock at the same time a large number of investors are short selling it. When the short sellers need to buy back the stock, the single investor suddenly has a great deal of control over the price.

natural corner

A corner in a security that is not the result of manipulation. If two groups are secretly attempting a takeover of a firm while speculators are shorting the stock, the raiders may achieve a corner without having intended to squeeze the short sellers. This maneuver differs from most corners in which the buyers lend stock to the short sellers with the intention of making the short sellers repurchase the shares at an artificially high price.
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