short squeeze

short squeeze definition - business

short squeeze

The pressure on short sellers to cover their positions if prices increase sharply or there is difficulty in borrowing the security the sellers are short. The rush to cover produces additional upward pressure on the price of the stock, which then causes an even greater squeeze. Also called squeezing the shorts.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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