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natural corner

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Financial Dictionary

natural corner

A corner in a security that is not the result of manipulation. If two groups are secretly attempting a takeover of a firm while speculators are shorting the stock, the raiders may achieve a corner without having intended to squeeze the short sellers. This maneuver differs from most corners in which the buyers lend stock to the short sellers with the intention of making the short sellers repurchase the shares at an artificially high price.

Wall Street Words: An A to Z Guide to Investment Terms by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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