Squeeze

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DEFINITION of 'Squeeze'

1. In financial terms, a period of time when borrowing is difficult.

2. In general business terms, times when increasing costs cannot be passed onto consumers. The decrease in profits is said to be caused by a "squeeze" on profit margins.

BREAKING DOWN 'Squeeze'

Be careful not to confuse this with the short squeeze, which is an upward movement in price of a stock caused by investors covering their short positions.

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