bear raid

(redirected from Bear Raids)
Also found in: Dictionary.

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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

Bear Raid

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.
Mentioned in ?
References in periodicals archive ?
"The sooner the fundraising is confirmed, the sooner the company can prove that it is a well-funded business and no longer be vulnerable to these sorts of bear raids."
The only light relief came from Simon Chalkwell, known in the stock market as Evil Knievel because of his daring bear raids on shares that he believes to be over-rated.
WAGNER'S not the only one celebrating - Slickers are too, after seeing off one of the most daring bear raids in corporate history.