UK Accounting Glossary
Cornering the market occurs when an investor or group of investors purchases enough stock or a sufficient quantity of a commodity that they can unduly influence the stock or commodity’s price. Cornering the market is illegal. Probably one of the most famous historical examples of an attempt at cornering the market occurred several years ago when the Hunt brothers attempted to corner the silver market. Ultimately their attempt at cornering the market in silver was unsuccessful. Few, if any, attempts at cornering the market have proven successful over the long run. Cornering the market is not practical for mid-cap or large-cap stocks due to a large number of shares on the market. Cornering the market is theoretically possible with many penny stocks and certain commodities for which there is a finite quantity available.
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This glossary post was last updated: 4th February 2020.