Hammering

A stock which has seen a large decline in its price in a short period of time is known to be “hammered”. This may be due to a deterioration in fundamentals or other reasons (such as a large institution unloading its shares at once). Sometimes this may even be intentional, although that may be considered manipulation and a violation of SEC rules.

Traders should deal with stocks being hammered with caution, as the adage “Don’t try to catch a falling knife” is suitable here.