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Stock Basher: What It Is, How It Works

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A stock basher is a person who manipulates the market by repeatedly spreading false or exaggerated claims against a public company in an attempt to devalue a stock. They often claim to have inside information on specific stocks or make hyperbolic claims about the future performance of a stock. Stock bashers create misinformation campaigns and tend to target stocks of smaller companies rather than widely-held stocks because the markets are more easily manipulated.1

 

In most cases, the stock basher will directly benefit from market manipulation by spreading highly negative rumors. The hope is that investors will believe the false claims and sell their stock before it fails. This allows the basher and their backers to purchase the stock and reap greater gains. While this seems to be the primary motivation for most stock bashing, some analysts also speculate that some bashers may be former employees or stakeholders in a company pursuing revenge.

Market Manipulation: Exposing the Tactics of Stock Bashers - FasterCapital

Stock Basher: What It Is, How It Works, and Example