By Amber Deter What is a short squeeze? If you, like many investors, saw what happened with Gamestop (NYSE: GME), you likely have this question. Afterall, it’s not a strategy often used by the common investor. Here we’ll answer your question. But before we talk about short squeezes, there’s something we need to understand: short selling.
The Lesson Behind Short Squeezes: Short Selling
Short selling is the idea behind a short squeeze. However, it is an advanced trading strategy. Short selling starts when investors think the price of a stock will go down. So, they borrow shares and sell them at current price. Once the …read more
