Does offer price change after short squeeze?

If you announce a bid for a company with a high short interest, there's likely to be a short squeeze, sending the share price up. Do you then have to adjust your bid even higher to reflect the new share price?

 

If a company is trading at, let's say, 10 dollars with a ton of short interest. You announce a bid of $14, generally that will be the cap on how it high it jumps. Sure, it could go past it and go to $15 but logically it will revert back towards $14, with a discount pending for risk of closing, etc.

Simplistic example, but the point still stands.

 

Quia in deleniti autem quisquam non. Natus natus quidem numquam minima est magnam.

Expedita ut aut aliquid. Consequatur vel doloremque minima dolor. Placeat quo dolores illum. Et incidunt omnis possimus. Quis eum nihil eos ut.

Tempore tenetur sapiente nesciunt. Saepe et quis molestiae. Rerum maiores voluptas dolore. Sit nam fugiat sit sit dignissimos modi.

Et architecto ut voluptas aut reprehenderit est. Eaque ut labore ea ducimus sint et nam. Aut quasi corporis delectus qui. Aspernatur ut qui odit veniam qui ipsum.

Career Advancement Opportunities

May 2024 Investment Banking

  • Jefferies & Company 02 99.4%
  • Lazard Freres No 98.8%
  • Goldman Sachs 18 98.3%
  • Harris Williams & Co. New 97.7%
  • JPMorgan Chase 04 97.1%

Overall Employee Satisfaction

May 2024 Investment Banking

  • Harris Williams & Co. 18 99.4%
  • JPMorgan Chase 10 98.8%
  • Lazard Freres 05 98.3%
  • Morgan Stanley 07 97.7%
  • William Blair 03 97.1%

Professional Growth Opportunities

May 2024 Investment Banking

  • Lazard Freres 01 99.4%
  • Jefferies & Company 02 98.8%
  • Goldman Sachs 17 98.3%
  • Moelis & Company 07 97.7%
  • JPMorgan Chase 05 97.1%

Total Avg Compensation

May 2024 Investment Banking

  • Director/MD (5) $648
  • Vice President (20) $385
  • Associates (90) $259
  • 3rd+ Year Analyst (14) $181
  • Intern/Summer Associate (33) $170
  • 2nd Year Analyst (67) $168
  • 1st Year Analyst (205) $159
  • Intern/Summer Analyst (146) $101
notes
16 IB Interviews Notes

“... there’s no excuse to not take advantage of the resources out there available to you. Best value for your $ are the...”

Leaderboard

1
redever's picture
redever
99.2
2
Secyh62's picture
Secyh62
99.0
3
Betsy Massar's picture
Betsy Massar
99.0
4
BankonBanking's picture
BankonBanking
99.0
5
GameTheory's picture
GameTheory
98.9
6
CompBanker's picture
CompBanker
98.9
7
kanon's picture
kanon
98.9
8
dosk17's picture
dosk17
98.9
9
DrApeman's picture
DrApeman
98.8
10
bolo up's picture
bolo up
98.8
success
From 10 rejections to 1 dream investment banking internship

“... I believe it was the single biggest reason why I ended up with an offer...”