bear raid

Bear Raid

The illegal practice of attempting to push the price of a stock lower by taking large short positions and spreading unfavorable rumors about the target firm.

Notes:

In a bear raid, the manipulators profit on the difference between the original stock price and the lower (manipulated) price. This was a popular practice in the early 1900s.

See also: Bear Hug, Bear Market, Bear Trap, Poop and Scoop, Short, Short Covering, Short Interest, Short Sale Rule, Short Squeeze

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Bear raid

In the context of general equities, attempt by investors to move the price of a stock opportunistically by selling large numbers of shares short. The investors pocket the difference between the initial price and the new, lower price after this maneuver. This technique is illegal under SEC rules, which stipulate that every short sale must be on an uptick.

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bear raid

A concerted effort to drive down the price of a stock by selling many shares short. The bear raid was popular among speculators in the early 1900s. Such a raid would frequently be accompanied by unfavorable rumors and stories about the target firm that would be planted in business publications. The goal of the raid was to involve other investors in a selling stampede that would drive the stock's price down to a bargain level.