Bear raid: Difference between revisions
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[[Market trend|''bear'' or ''bearish'']] in the language of [[market sentiment]] to reflect the idea that investors expect downward price movement. |
[[Market trend|''bear'' or ''bearish'']] in the language of [[market sentiment]] to reflect the idea that investors expect downward price movement. |
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A bear raid can be done by spreading negative [[rumor]]s about the target firm, which puts downward pressure on the share price. This is typically considered a form of [[securities fraud]]. Alternatively, |
A bear raid can be done by spreading negative [[rumor]]s about the target firm, which puts downward pressure on the share price. This is typically considered a form of [[securities fraud]]. Alternatively, traders could take on large short positions themselves, with the large volume of selling ideally causing the price to fall, making the strategy self-perpetuating. |
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== See also == |
== See also == |
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Revision as of 17:38, 17 November 2012
A bear raid is a type of stock market strategy, where a trader (or group of traders) attempts to force down the price of a stock to cover a short position. The name is derived from the common use of bear or bearish in the language of market sentiment to reflect the idea that investors expect downward price movement.
A bear raid can be done by spreading negative rumors about the target firm, which puts downward pressure on the share price. This is typically considered a form of securities fraud. Alternatively, traders could take on large short positions themselves, with the large volume of selling ideally causing the price to fall, making the strategy self-perpetuating.
See also
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