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.

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 ?
Robert Post, owner of Shoe Masters, which is located at 11324 Arcade Drive, is on the right track for cornering the market.
With this hire, ABI Research is effectively cornering the market in RFID analysis," adds Erik Michielsen, practice director for RFID and M2M.
The only reason the DWP had extra power is that Los Angeles residents paid dearly for power for two decades while its utility ran up $4 billion in bad debt - cornering the market on electricity at the peak of the market after the oil crisis of the 1970s.
The Guggenheims made their fortune by cornering the market in copper mines; Peggy Guggenheim once cornered the market in avant-garde art, before the rest of the world came along to undo her monopoly.
Biophan is achieving its strategic goal of cornering the market for MRI safe and image compatible implantable medical devices and interventional surgical instruments.