corner(redirected from on every corner)
Also found in: Dictionary, Thesaurus, Medical, Legal, Financial, Acronyms.
corner,securing of all or nearly all the supply of any commodity or stock so that its buyers are forced to pay exorbitant prices. Corners may be planned deliberately or may be brought about unintentionally, as through a fight for controlling interest in a corporation's stock. In the first type the operator acquires control of the particular commodity or shares and then induces other operators to promise to sell the commodity or stock by raising the market price to an unusually high level. The cornerer purchases such promises to sell. When the cornerer thinks he can make the biggest profit, he withdraws all his shares from the market, and those who have promised to sell find themselves "cornered"; that is, they have to buy stock from the cornerer at his own price to fulfill their contracts. The cornerer sets the price just low enough to keep the dealers from repudiating their contracts. To be successful, cornerers must have enough money to buy the necessary amount of shares or commodity. The Bible describes Joseph's corner of the grain in Egypt. A famous deliberate corner was Jim Fisk's and Jay Gould's corner of the U.S. gold supply in 1869; the move was frustrated when the federal government placed its own gold supply on sale. A notable illustration of the unintentional corner was that on the stock of the Northern Pacific RailwayNorthern Pacific Railway,
former American rail line, following the northern route from Duluth and St. Paul, Minn., to Seattle, Wash., and Portland, Oreg. The Northern Pacific RR Company was chartered by special act of Congress in 1864, and construction was begun in 1870.
..... Click the link for more information. in 1901. Deliberate corners and other forms of price manipulation on the various stock and commodity exchanges are now illegal in the United States. The Securities and Exchange Commission, the Dept. of Agriculture, and stock and commodity exchanges seek to prevent corners.
the simplest type of association of capitalists formed to control the market of some commodity. The corner seeks to purchase all available supplies in order to resell them at higher prices. Corners are created in the commodity and the stock exchanges; in the latter they purchase all available stocks of some companies for subsequent resale or for acquisition of the controlling interest in a certain company.
Corners were known as early as the 16th and 17th centuries. During the last decade of the 19th century, well-known corners were created by the American railroad “barons” during the struggle with the biggest exchange promoters, or “bears” (in the jargon of the security exchange, bears are businessmen who support the downward tendency of stock and bond prices). Sometimes corners are organized to combat massive sellings on the stock exchange by the bears, who are trying to drive down the price of a company’s stocks.
Because as long as two weeks may pass between the moment the business transaction is contracted and the time the commodity or securities are actually transferred to the buyer, the bears can repurchase the stocks or commodities sold by them and receive a speculative profit from the difference between the buying and selling prices. Corners are formed to prevent the repurchase of the commodity once sold. Since in this case the bears are threatened with bankruptcy and complete ruin, they sometimes are forced to hold up the sale of stocks, which in turn leads to the stabilization of the rates of exchange for the stocks of the company for which the corner is acting.
A. V. GRISHIN