A bear raid is a type of stock market strategy, where a trader (or group of traders) attempts to force down the price of a stock to cover a short position. The name is derived from the common use of bear or bearish in the language of market sentiment to reflect the idea that investors expect downward price movement.[1]
A bear raid can be done by spreading negative rumors about the target firm,[2] which puts downward pressure on the share price. This is typically considered a form of securities fraud. Alternatively, traders could take on large short positions themselves, manipulating the price with the large volume of selling,[3] making the strategy self-perpetuating.
^Law, Jonathan, ed. (2008). A dictionary of finance and banking (4th ed.). Oxford: Oxford University Press. ISBN9780199229741. Retrieved 22 November 2014.
^Malik, Andrew; Sarna, David E.Y. (2010). History of Greed Financial Fraud from Tulip Mania to Bernie Madoff. Hoboken: John Wiley & Sons. p. 62. ISBN9780470877708. Retrieved 22 November 2014.
^Scott, David L. (2003). Wall Street words : an A to Z guide to investment terms for today's investor (3rd ed., newly revised and updated. ed.). Boston: Houghton Mifflin. p. 28. ISBN0618176519. Retrieved 22 November 2014.
^Sayle, Murray (2001-04-05). "Japan goes Dutch". London Review of Books. 23 (7): 3–7. ISSN 0260-9592. Retrieved 2017-11-01. ...Dutch market punters pioneered short selling, option trading, debt-equity swaps, merchant banking, unit trusts and other speculative instruments, much as we now know them. With them came specialised offshoots – insurance, retirement funds and other orderly forms of investment – and the maladies of capitalism: the boom-bust cycle, the world's first asset-inflation bubble, the tulip mania of 1636-37, and even, in 1607, history's first bear raider, a canny shareholder named Isaac le Maire who dumped his VOC stock, forcing the price down, and then bought it back at a discount.
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bear, raid, bear, raid, type, stock, market, strategy, where, trader, group, traders, attempts, force, down, price, stock, cover, short, position, name, derived, from, common, bear, bearish, language, market, sentiment, reflect, idea, that, investors, expect, . A bear raid is a type of stock market strategy where a trader or group of traders attempts to force down the price of a stock to cover a short position The name is derived from the common use of bear or bearish in the language of market sentiment to reflect the idea that investors expect downward price movement 1 A bear raid can be done by spreading negative rumors about the target firm 2 which puts downward pressure on the share price This is typically considered a form of securities fraud Alternatively traders could take on large short positions themselves manipulating the price with the large volume of selling 3 making the strategy self perpetuating History Edit Replica of an East Indiaman of the Dutch East India Company United East Indies Company VOC See also Financial history of the Dutch Republic and Dutch East India Company The practice of bear raid has its roots in the 17th century Dutch Republic In 1609 Isaac Le Maire a sizeable shareholder of the Dutch East India Company VOC organized a bear raid on the stock of the company 4 See also EditShort and distort Uptick ruleReferences Edit Law Jonathan ed 2008 A dictionary of finance and banking 4th ed Oxford Oxford University Press ISBN 9780199229741 Retrieved 22 November 2014 Malik Andrew Sarna David E Y 2010 History of Greed Financial Fraud from Tulip Mania to Bernie Madoff Hoboken John Wiley amp Sons p 62 ISBN 9780470877708 Retrieved 22 November 2014 Scott David L 2003 Wall Street words an A to Z guide to investment terms for today s investor 3rd ed newly revised and updated ed Boston Houghton Mifflin p 28 ISBN 0618176519 Retrieved 22 November 2014 Sayle Murray 2001 04 05 Japan goes Dutch London Review of Books 23 7 3 7 ISSN 0260 9592 Retrieved 2017 11 01 Dutch market punters pioneered short selling option trading debt equity swaps merchant banking unit trusts and other speculative instruments much as we now know them With them came specialised offshoots insurance retirement funds and other orderly forms of investment and the maladies of capitalism the boom bust cycle the world s first asset inflation bubble the tulip mania of 1636 37 and even in 1607 history s first bear raider a canny shareholder named Isaac le Maire who dumped his VOC stock forcing the price down and then bought it back at a discount This finance related article is a stub You can help Wikipedia by expanding it vte Retrieved from https en wikipedia org w index php title Bear raid amp oldid 1139295050, wikipedia, wiki, book, books, library,
