Investopedia

Hammering

Filed Under »
Dictionary Says

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 Says

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.

Articles Of Interest

  1. Connecting Crashes, Corrections And Capitulation

    Even though crashes, corrections and capitulations are bad news for investors holding the stock, there are still ways to profit.
  2. If everyone is selling in a bear market, does your broker have to buy your shares from you? If so, won't he be losing his shirt?

    A broker won't lose money when a stock goes down because he or she is usually nothing more than an agent acting on sellers' behalf in finding somebody else who wants to buy the shares. Even though ...
  3. Short Selling Tutorial

    Want to profit on declining stocks? This trading strategy does just that.
  4. What is a stock ticker?

    A stock ticker is a report of the price for certain securities, updated continuously throughout the trading session by the various stock exchanges. A "tick" is any change in price, whether that ...
  5. Institutional Investors

    Learn more about the advantages that financial institutions enjoy when buying and selling securities.
  6. Weighted Average

    Learn how to weigh the relative importances of data points in a calculated average.
  7. Bid-Ask Spread

    Find out more about this frequently referenced, but often misunderstood, term used to describe the price at which a stock is bought or sold at.
  8. Why Is Liquidity Important?

    Learn more on why liquidity is important to consider when examining a stock, next to its share price.
  9. Understanding The Ticker Tape

    We explain the meaning and use of that reel of symbols whizzing across your TV or computer screen.
  10. Whisper Numbers: Should You Listen?

    These unofficial forecasts hold the potential for insider insight - and investment risk.
comments powered by Disqus
Marketplace
Hot Definitions
  1. Abatement Cost

    A cost borne by many businesses for the removal and/or reduction of an undesirable item that they have created.
  2. Validation Period

    The amount of time necessary for the premium on an insurance policy to cover the commissions, the cost of investigation, medical exams and other expenses associated with the issuance of the policy.
  3. Winner's Curse

    Because of incomplete information, emotions or any other number of factors regarding the item being auctioned, bidders can have a difficult time determining the item's intrinsic value. As a result, the largest overestimation of an item's value ends up winning the auction.
  4. Glocalization

    A combination of the words "globalization" and "localization" used to describe a product or service that is developed and distributed globally, but is also fashioned to accommodate the user or consumer in a local market.
  5. Disaster Loss

    A special type of tax-deductible loss, similar to a casualty loss, where a loss has been incurred by taxpayers who reside in an area that has been designated as a federal disaster area by the President.
  6. Fool In The Shower

    The notion that changes or policies designed to alter the course of the economy should be done slowly, rather than all at once.
Trading Center