Hammering

Definition

A hammer is a tool or device that delivers a blow to an object. Most hammers are hand tools used to drive nails, fit parts, forge metal, and break apart objects. Hammers vary in shape, size, and structure depending on their purposes. Hammers are basic tools in many trades. The usual features are a head and a handle. Although most hammers are hand tools, powered versions exist; they are known as powered hammers. Types of power hammer include steam hammers and trip hammers, often for heavier uses, such as forging. Some specialized hammers have other names, such as sledgehammer, mallet, and gavel. The term “hammer” also applies to devices that deliver blows, such as the hammer of a firearm, or the hammer of a piano, or the hammer ice scraper.


Hammering

What is ‘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.

Explaining ‘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.

Further Reading