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. Short And Distort

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

    A company owned by Barry Minkow in the 1980s. Through such means ...
  3. Caveat Emptor

    A Latin phrase for "let the buyer beware." The term is primarily ...
  4. Leprechaun Leader

    A corporate manager or an executive who, like the fabled Irish ...
  5. Mr. Copper

    Otherwise known as Yasuo Hamanaka, Mr. Copper was a trader in ...
  6. Poop And Scoop

    A highly illegal practice occurring mainly on the internet. A ...
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?

Hot Definitions
  1. Wage-Price Spiral

    A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. ...
  2. Accelerated Depreciation

    Any method of depreciation used for accounting or income tax purposes that allows greater deductions in the earlier years ...
  3. Call Risk

    The risk, faced by a holder of a callable bond, that a bond issuer will take advantage of the callable bond feature and redeem ...
  4. Parity Price

    When the price of an asset is directly linked to another price. Examples of parity price are: 1. Convertibles - the price ...
  5. Earnings Multiplier

    An adjustment made to a company's P/E ratio that takes into account current interest rates. The earnings multiplier is used ...
  6. Macroeconomics

    The field of economics that studies the behavior of the aggregate economy. Macroeconomics examines economy-wide phenomena ...
Trading Center