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Warning
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Simple English definitions for legal terms
cornering the market
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A quick definition of cornering the market:
Cornering the market is when someone buys or controls a lot of something, like a product or stock, so they can control the price and make more money. It's like having all the candy in the store and being able to charge whatever price you want for it.
A more thorough explanation:
Definition: Cornering the market is the act of acquiring a significant portion of the available supply of a commodity or security, which allows the owner to manipulate the price of the commodity or security.
Example: If a person or a group of people buy up all the available supply of a particular stock, they can control the price of that stock. They can then sell the stock at a higher price, making a profit. This is known as cornering the market.
Explanation: When a person or a group of people buy up a significant portion of a commodity or security, they can create an artificial scarcity of that commodity or security. This can cause the price of the commodity or security to rise, allowing the owner to sell it at a higher price and make a profit. This practice is illegal in most countries because it can harm other investors and disrupt the market.