Understanding the Phenomenon of Short Squeeze in Stock Markets
Friday, 17 May 2024, 12:29
Unveiling the Influence of Short Squeeze on Stock Prices
What You Need to Know:
- Short squeezes drive drastic stock movements
- Short squeeze occurs when short sellers are forced to buy to cover positions
- Surge in stock price due to limited availability of shares causing sharp demand
This week, several stocks experienced extreme volatility as a result of short squeezes. Understanding the mechanics behind short squeezes is essential for investors navigating the market.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.