Bear raid
A bear raid is a type of stock market strategy, where a trader 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.
A bear raid can be done by spreading negative rumors about the target firm, 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, making the strategy self-perpetuating.History
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, organized a bear raid on the stock of the company.
