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bear raid

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Financial Dictionary

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.

Investopedia Commentary

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.

Related Links

Investment Scams Tutorial

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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Financial Dictionary

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 by David L. Scott.
Copyright © 2003. Published by Houghton Mifflin.
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