Archive for January 16th, 2022

January 16, 2022

Short Squeeze

GameStop short squeeze

In the stock market, a short squeeze is a rapid increase in the price of a stock owing primarily to an excess of short selling of a stock rather than underlying fundamentals. A short squeeze occurs when there is a lack of supply and an excess of demand for the stock due to short sellers having to buy stocks to cover their short positions.

Shorting means to bet that an asset will lose value. This can be done by borrowing the asset, selling it at a higher price, and then returning the asset once you can buy it back at a lower price.

read more »