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LSDefine

Simple English definitions for legal terms

bear raid

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A quick definition of bear raid:

A bear raid is when a big trader sells a lot of stock really quickly to make the price go down. This is not allowed by the government. Another word for it is a bear drive.

A more thorough explanation:

Definition: A bear raid is a term used in the stock market to describe a situation where a large trader sells a high volume of stocks in a short period of time in an attempt to drive down the stock price.

For example, if a trader believes that a particular stock is overvalued, they may initiate a bear raid by selling a large number of shares in a short period of time. This can cause panic among other investors, who may also start selling their shares, leading to a rapid decline in the stock price.

Bear raids are illegal under federal law, as they are considered a form of market manipulation.

bear market | be at the horn

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