![]() Once the corner is completed and the shorts have covered their positions at the inflated price, little demand is left for the stock. Of course, creating a corner is risky for the bulls as well because it takes a lot of resources to buy up the float in the stock. The shorts have no choice but to buy the stock from the bulls at whatever price they demand. If the bulls can buy up the existing float, the stock is cornered. The bulls, on the other hand, can try and beat the shorts by forcing the price of the stock up, squeezing the shorts and forcing them to sell at a loss. In a bear raid, several shorts make a concerted effort to drive the price of a stock down so they can profit from the decline. When the stock declines in price, the shorts buy the shares back at a lower price, make a profit, and then return the stock to the person they borrowed it from. The goal of shorting a stock is to borrow shares from someone who owns them and sell them. Saunders became known as the home boy who faced off the financiers of Wall Street who were using a bear raid to try and profit from a decline in Piggly Wiggly stock. Clarence Saunders was generous, determined, stubborn, and well-known in Memphis. The corner became so prominent, that the whole affair became known as the Piggly Crisis. Unfortunately, in 1923, Saunders had lost control over his Piggly Wiggly stores.Ĭlarence Saunders also became part of the last stock corner on the New York Stock Exchange in 1923. ![]() By 1922, there were over 1,200 Piggly Wiggly Stores of which about 650 were owned by Saunders, and by 1932, there were 2,660 Piggly Wiggly stores with sales of $180 million. Saunders incorporated the Piggly Wiggly Stores Corp. Saunders patented the idea of self-service stores in 1917. ![]() Every item in the store had a price on it, another innovation, and Saunders provided shopping baskets so customers could take their items to a check-out stand in front. Each store had a turnstile at the entrance. Saunders opened up his first Piggly Wiggly store on Septemat 79 Jefferson Ave. This system later inspired Toyota to apply the same concept to automobiles which helped Toyota to control costs and conquer the globe. Saunders also developed a just-in-time delivery system to get food to his Piggly Wiggly stores. Saunders wanted to free customers from the tyranny of clerks by letting them do their own shopping. Saunders was obsessed with the idea of efficiency, and thought that customers wasted a lot of time waiting on clerks. ![]()
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