bear raid(redirected from Bear Raids)
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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.
The practice of short selling a stock and spreading unfavorable news (which may or may not be true) about the company. That is, a bear raid occurs when one borrows a security, sells it, and attempts to push the security's price downward. This would result in a significant profit on the short sale. While it was a popular speculative investment strategy in the early 1900s, it is not illegal.
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.