What happens when stocks go parabolic?A stock that goes...

What happens when stocks go parabolic?

A stock that goes parabolic has numerous consequences. The most common of these consequences is known as ashort-squeeze, which is described as a situation where short-sellers make substantial losses when a stock soars.

A short-seller is a person who bets that a company’s stock will drop in a certain duration.Shorting a stock is riskierthan buying it because shortingcan lead to unlimited lossesin the market. This happens since the lowest price that a stock can fall to is zero while there is no maximum price where it can move to.

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