| Short Squeeze |
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A situation in which a lack of supply and excess demand in a traded
stock tends to force prices upward.
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Short
squeeze's occur more often in smaller cap stocks which have a very
small float. For example if a stock starts to rise rapidly in price
it can easily escalate if short sellers want out. Lets say the stock
rises 15% in one day, those with short positions may be forced to
liquidate and cover their position by purchasing the stock. If enough
short sellers buy back the stock it can push the price even higher!
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