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3 Nasdaq Stocks Headed for a Short Squeeze
Investors can find treasure among Nasdaq stocks in some unlikely places.
Like heavily "shorted" stocks, for example. Short sellers bet that a stock will fall in price.
But short sellers can be wrong. If a stock goes up, they take a loss. If the stock rises rapidly, it creates a "short squeeze," forcing short sellers to buy shares quickly before the price goes higher and they lose more money.
Investors can find treasure among Nasdaq stocks in some unlikely places.
Like heavily "shorted" stocks, for example. Short sellers bet that a stock will fall in price.
But short sellers can be wrong. If a stock goes up, they take a loss. If the stock rises rapidly, it creates a "short squeeze," forcing short sellers to buy shares quickly before the price goes higher and they lose more money.