A bear trap is, well, a trap relating to a bear (market). It's what happens when the price of an investment looks like it's dropping, so investors rush in, thinking they can profit on the drop...but then, it doesn't actually drop.
Bear investors often use the short strategy, meaning they buy low and sell high, sometimes the same stock repeatedly. As you can imagine, these bargain hunters thrive on a bottoming out market, so they could be quick to see potential in a lessening share price, and be quickly snared in the bear trap.
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Finance: What is a Bear Raid?8 Views
Finance allah shmoop what is a bear raid So this
is a bear raid and this is a bear raid
And you knew you were going there Well i think
there's fraud fraud i tell you Well i think their
product just doesn't mean anything anymore Well i think that
with all those risk they're just trade me in it
too high a multiple Isn't the government going to regulate
them I thought that was a union coming in there
What are these people doing Are they rationally commenting on
honest things they actually believe are elements of the stock
No not at all In fact all of them shorted
the stock it's sixty bucks a share making the bet
that the stock would go down only now courtesy of
the wall street genius journalists being manipulated at the new
socialist times the group is spreading lies trickery and deceit
about stock prices Manipulating the market hoping to profit from
all the negative sentiment they've poured out there into the
ether making already nervous investors very nervous And it was
easy to get the journalist cooperate because well they hate
rich people Right All right Well if they covered it
thirty five that is unwound They're short position which started
at sixty bucks a share Well they'd have made twenty
five dollars a share in profits and that's totally illegal
Incidentally so is the other kind of bear raid but 00:01:29.315 --> [endTime] that we're not going there today Oh my
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