Bear raid

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, trFederal Reserve to raise interest rates into the slump. Some 4,000 banks and other lenders ultimately failed.aders could take Federal Reserve to raise interest rates into the slump. Some 4,000 banks and other lenders ultimately failed.on large short positions themselves, witFederal Reserve to raise interest rates into the slump. Some 4,000 banks and other lenders ultimately failed.h the large volume of selling ideally causing the price to fall, making the strategy self-perpetuating.

See also