Bear raid is a term that is commonly used in the world of finance and investments. It is a strategy that is often employed by investors to drive down the price of a particular security or asset. In this article, we will delve deeper into the definition and meaning of bear raid, its origins, associations, synonyms, antonyms, and example sentences.
Definitions
A bear raid is a coordinated effort by investors to sell a particular security or asset in large amounts, with the aim of driving down its price. This strategy is often used by short-sellers who borrow shares of a company and sell them in the hope of buying them back at a lower price. By driving down the price of the security, they can make a profit on the difference between the price at which they sold the shares and the price at which they buy them back.
Origin
The term bear raid has its roots in the world of hunting. In the 18th century, bear baiting was a popular sport in which bears were pitted against dogs in a fight to the death. The term “bear raid” was later adopted by investors to describe a coordinated effort to drive down the price of a particular security.
Meaning in different dictionaries
According to the Merriam-Webster dictionary, a bear raid is “an attempt by investors to force down the price of a security by selling large amounts of it”. The Oxford English Dictionary defines it as “a concerted effort by investors to sell a particular security or asset in large amounts, with the aim of driving down its price”.
Associations
Bear raids are often associated with short-selling, market manipulation, and illegal activities. While short-selling is a legitimate investment strategy, bear raids that involve market manipulation or insider trading are illegal and can result in severe penalties.
Synonyms
Some synonyms of bear raid include market manipulation, short-selling attack, price manipulation, and stock market crash.
Antonyms
The antonyms of bear raid are bull market, buying spree, and stock market rally.
The same root words
The term bear raid does not have any root words as it is a compound term that has its origins in the world of hunting.
Example Sentences
- The bear raid on the company’s stock caused a panic among investors, and many sold their shares at a loss.
- The SEC is investigating allegations of market manipulation and bear raids by a group of investors.
- The stock market crash of 1929 was caused by a series of bear raids on the market.
- The company’s stock price has been resilient in the face of bear raids by short-sellers.
- The bear raid on the cryptocurrency market caused a sharp drop in the value of Bitcoin.