Cornering the Market Law and Legal Definition
Cornering the market is the act or process of acquiring ownership or control of a large portion of the available supply of a commodity or security in the market. By this practice, the purchaser has complete supply and demand control of a security and thus permitting manipulation of the commodity’s or security’s price.
It is a situation where an individual, firm, or cartel controls the supply of a commodity and dictates its price. Since cornering is often ruthless in its anti-social behavior, governments enact anti-monopoly or anti-trust laws to prevent its occurrence.
