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Bear raid

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This is an old revision of this page, as edited by Funandtrvl (talk | contribs) at 18:55, 30 October 2009 (Removed category Finance; Quick-adding category Finance fraud (using HotCat)). The present address (URL) is a permanent link to this revision, which may differ significantly from the current revision.

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. This can be done by spreading negative rumors about the target firm, which puts downward pressure on the share price. This may be a form of securities fraud. Alternatively, traders could take on large short positions themselves, with the large volume of selling causing the price to fall, making the strategy self perpetuating.

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