A short squeeze is a market phenomenon in which a shorted security, such as a stock, jumps unexpectedly in price. Investors who short a stock are betting the stock will go down in value. To capitalize on that, they borrow shares from a broker, then sell them at the current price. When the stock price…

Alieza Durana writes for NerdWallet. Email: adurana@nerdwallet.com.

The article What Is a Short Squeeze? originally appeared on NerdWallet.

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