The objective of a bear raid is usually to push a stocks price lower by exploitative short sellers looking to make quick money from their short positions. These short sellers start by spreading disadvantageous rumors about a specific company, usually going through difficult times. However, while short selling is perfectly legal, It's coordinated short selling that's viewed as market manipulation by the SEC and spreading rumors are fraudulent activities.
The objective of a bear raid is usually to push a stocks price lower by exploitative short sellers looking to make quick money from their short positions. These short sellers start by spreading disadvantageous rumors about a specific company, usually going through difficult times. However, while short selling is perfectly legal, It's coordinated short selling that's viewed as market manipulation by the SEC and spreading rumors are fraudulent activities.
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