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.
Atque atque explicabo laudantium ea ut deserunt ex. Ea ad sit velit itaque.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...