Corner A Market

AAA

DEFINITION of 'Corner A Market'

To acquire enough shares of a particular security type, such as those of a firm in a niche industry, or to hold a significant commodity position to be able to manipulate its price. An investor needs deep pockets to be able to corner a market.


It can also mean to accumulate a major share of economic activity in a particular area. A phone company that dominated 90% of the wireless market could be said to have cornered the market.

INVESTOPEDIA EXPLAINS 'Corner A Market'

The Securities and Exchange Commission and Commodity Futures Trading Commission regulate and monitor the securities and commodities markets, and attempt to prevent and prosecute illegal trading behavior. Large institutions can often corner a market through legal means. A company that has cornered the market has a significant competitive advantage. However, any time a company has a large market share, it may be scrutinized by the Department of Justice's Antitrust Division - especially if competitors complain. Indeed, Microsoft faced such a fate because of its large share of the computer operating system market.

RELATED TERMS
  1. Hoarding

    The purchase of large quantities of a commodity with the intent ...
  2. Ghosting

    An illegal practice whereby two or more market makers collectively ...
  3. Large Trader

    An investor or organization with trades that are equal to or ...
  4. Manipulation

    The act of artificially inflating or deflating the price of a ...
  5. Securities And Exchange Commission ...

    A government commission created by Congress to regulate the securities ...
  6. Security

    A financial instrument that represents: an ownership position ...
Related Articles
  1. 4 History-Making Wall Street Crooks
    Personal Finance

    4 History-Making Wall Street Crooks

  2. The Copper King: An Empire Built On ...
    Investing Basics

    The Copper King: An Empire Built On ...

  3. Policing The Securities Market: An Overview ...
    Investing Basics

    Policing The Securities Market: An Overview ...

  4. Do traders, market makers, specialists ...
    Investing

    Do traders, market makers, specialists ...

comments powered by Disqus
Hot Definitions
  1. Letter Of Credit

    A letter from a bank guaranteeing that a buyer's payment to a seller will be received on time and for the correct amount. ...
  2. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  3. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  4. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  5. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  6. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
Trading Center