Hammering

AAA

DEFINITION of 'Hammering'

The rapid and concentrated sale of a stock thought to be overvalued by the market. It performed by investors and speculators who beleive that prices are inflated and that a period of liquidation is imminent.

INVESTOPEDIA EXPLAINS 'Hammering'

Hammering the market is achieved through large sale orders or many small sell orders. In some cases, investors may even collaborate on orders to attempt to push the share's price even lower.

RELATED TERMS
  1. Short Selling

    The sale of a security that is not owned by the seller, or that ...
  2. Capitulation

    When investors give up any previous gains in stock price by selling ...
  3. Overvalued

    A stock with a current price that is not justified by its earnings ...
  4. Poop And Scoop

    A highly illegal practice occurring mainly on the internet. A ...
  5. Pump And Dump

    A scheme that attempts to boost the price of a stock through ...
  6. Acquisition

    A corporate action in which a company buys most, if not all, ...
Related Articles
  1. Connecting Crashes, Corrections And ...
    Active Trading

    Connecting Crashes, Corrections And ...

  2. If everyone is selling in a bear market, ...
    Retirement

    If everyone is selling in a bear market, ...

  3. Short Selling Tutorial
    Active Trading Fundamentals

    Short Selling Tutorial

  4. What Does The Dow Jones Industrial Average ...
    Investing Basics

    What Does The Dow Jones Industrial Average ...

Hot Definitions
  1. Halloween Strategy

    An investment technique in which an investor sells stocks before May 1 and refrains from reinvesting in the stock market ...
  2. Halloween Massacre

    Canada's decision to tax all income trusts domiciled in Canada. In October 2006, Canada's minister of finance, Jim Flaherty, ...
  3. Zombies

    Companies that continue to operate even though they are insolvent or near bankruptcy. Zombies often become casualties to ...
  4. Witching Hour

    The last hour of stock trading between 3pm (when the bond market closes) and 4pm EST. Witching hour is typically controlled ...
  5. October Effect

    The theory that stocks tend to decline during the month of October. The October effect is considered mainly to be a psychological ...
  6. Repurchase Agreement - Repo

    A form of short-term borrowing for dealers in government securities.
Trading Center