Bear raid

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 or misinformation about the target firm,[2] which puts downward pressure on the share price.

[citation needed] Alternatively, traders could take on large short positions themselves, manipulating the price with the large volume of selling,[3] making the strategy self-perpetuating.

[citation needed] The practice of bear raid has its roots in the 17th-century Dutch Republic.