Cornering the market

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Also found in: Legal, Idioms.

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.

cornering the market

an attempt to buy up all the supplies of a particular commodity in order to exploit the market by charging high prices.
References in periodicals archive ?
Isn't it depressing that there are so few out gay male actors in Hollywood that one of them could someday corner the market in narrating documentaries about how few out gay actors there are in Hollywood?
While product lines such as Dark & Lovely have helped the Savannah, Georgia, company corner the market for African American hair care products, they left Carson vulnerable when the markets seemed saturated.
Cohen had bought some of the dancer's shoes in the first auction, in New York, and was evidently determined to corner the market. According to officials at the auction house, Cohen told Christie's he and his wife would be willing to lend the ballet slippers to dance schools and institutions.
THE Chair Company continues to corner the market in just that.