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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
Dictionary of Financial Terms. Copyright © 2008 Lightbulb Press, Inc. All Rights Reserved.
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.Collins Dictionary of Business, 3rd ed. © 2002, 2005 C Pass, B Lowes, A Pendleton, L Chadwick, D O’Reilly and M Afferson