Stock Basher

AAA

DEFINITION of 'Stock Basher'

An individual, either acting alone or on behalf of someone else, who attempts to devalue a stock by spreading false or exaggerated claims against a public company. After the stock's price has dropped, the basher, or the basher's employer, will then purchase the stock at a lower price than what he or she believes it is intrinsically worth.

INVESTOPEDIA EXPLAINS 'Stock Basher'

This is an illegal activity that can carry significant legal repercussions. The basher generally benefits on how effective the negative rumors are, which can dramatically affect a stock's value. If an investor believes the false claims, he or she may sell off the stock at the higher price before it falls. The basher will then purchase the stock and ride out the gains.

RELATED TERMS
  1. Ponzi Scheme

    A fraudulent investing scam promising high rates of return with ...
  2. Pump And Dump

    A scheme that attempts to boost the price of a stock through ...
  3. Wire Fraud

    A situation where a person concocts a scheme to defraud or obtain ...
  4. Affinity Fraud

    A type of investment scam in which a con artist targets members ...
  5. Short And Distort

    An illegal practice employed by unethical internet investors ...
  6. ZZZZ Best

    A company owned by Barry Minkow in the 1980s. Through such means ...
Related Articles
  1. Online Investment Scams Tutorial
    Economics

    Online Investment Scams Tutorial

  2. How The Power Of The Masses Drives The ...
    Active Trading Fundamentals

    How The Power Of The Masses Drives The ...

  3. 4 Dishonest Broker Tactics And How To ...
    Personal Finance

    4 Dishonest Broker Tactics And How To ...

  4. How does a pump and dump scam work?
    Investing

    How does a pump and dump scam work?

comments powered by Disqus
Hot Definitions
  1. Due Diligence - DD

    1. An investigation or audit of a potential investment. Due diligence serves to confirm all material facts in regards to ...
  2. Certificate Of Deposit - CD

    A savings certificate entitling the bearer to receive interest. A CD bears a maturity date, a specified fixed interest rate ...
  3. Days Sales Of Inventory - DSI

    A financial measure of a company's performance that gives investors an idea of how long it takes a company to turn its inventory ...
  4. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  5. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  6. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
Trading Center