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Finance Dictionary and Glossary of Investment Terms
Bear raid
Definition 1.
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 S.E.C. rules, which stipulate that every short sale must be on an uptick.
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Definition 2.
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.
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Definition 3.
A trader's attempt to force down the price of a particular security by heavy selling or short selling. In the case of short selling, the trader then makes a profit by buying the stock cheaply to cover the short position. Bear raids are often carried out by large groups of traders together, since an individual trader might not have a large enough trade to influence market price significantly. This practice is not allowed under SEC regulations, which allow short sales only on upticks.
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