Whats is short squeeze mean on a stock?

Question

Whats is short squeeze mean on a stock?

Answer 1

it means it is going up in price quit nicely.

Answer 2

you've aimed too high

Answer 3

Basically it means that investors who have bet that a stock will go down have sold it short. However, if there is a large number of people who went short, when the stock goes up, buyers come in a push the stock higher. The shorts, start seeing losses, and cover their positions, pushing the stock even higher and higher, hence 'Squeezing' the shorts. In effect causing them to lose a lot of money.

Answer 4

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Answer 5

There have not been any short squeezes in recent history to equal the short squeeze that Alan Ryan put on the members of the NY stock exchange back in 1920.  He was president of Stutz Motor Car Company (the Stutz Bear Car).  Members of the exchange had shorted a very large position of Stutz.  Ryan bought up all the stock available. The shorts have to borrow the stock in order to sell it short hoping to buy it back at a lower price and replace the borrowed shares.  Since Ryan had bought up all the shares they could not cover their shorts and were caught in a short squeeze. Ryan demanded the borrowed shares, which they could not deliver. That was the squeeze.  But they were members of the exchange so guess what happened?  The exchange delisted the stock and caused Ryan to go bankrupt.  

What is that old saying?  It is not what you know but who you ------.  Something like that.  The exchange looks after its own and do not get in the way of their members making money.

Answer 6

If a company has a large open short interest, many groups will try to increase the buying of the stock in order to drive the price of the stock higher

When those that are short, see the price start to rise, they too will rush in to buy the stock, thus you have an over buying effect which will drive the price of the stock higher

The short sellers when they an increase in buying by the rising of the stock  they get nerveous and come and close out their short positions  -  thus they are being squeezed

I hope you understand now and thank I could help

There is excessive buying