Bear Squeeze
Definition of 'Bear Squeeze'A change in market conditions that forces pessimistic investors attempting to profit from price declines to buy back an investment at a higher price than they sold it for. A bear squeeze can be an intentional event created by certain players in the investment markets, usually central banks or market makers. |
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Investopedia explains 'Bear Squeeze'A central bank can create a bear squeeze by increasing exchange rates, while market makers can create a bear squeeze by pushing a stock's price up. A bear squeeze forces bearish investors, who have shorted a stock, to incur a loss. In order to exit their short positions, they must buy the stock back at a rising price. Also called a "short squeeze." |
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