What Is A Bear Hug?


Do your relatives squeeze the life out of you? Then you’re bound to love this next post; it’s all about a bear hug. Wait! What the heck is a bear hug?

Although it might remind you of your great aunt Flossy, the term bear hug has nothing to do with an actual embrace. It’s a term from finance that’s used even when extended family is nowhere in site.

A bear hug is an offer from one company to buy the stock of another, at a price that’s seriously higher than anyone else would otherwise pay.

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Trader disclosure: On Oct 12, 2007, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s Fast Money were owned by the Fast Money traders: Macke Owns (ATVI), (INTC), (JWN), (EMC); Najarian Owns (BEAS), (C), (EMC), (GOOG), (UA); Finerman Owns (C), (GS); Finerman's Firm Owns (COP), (CTX), (GE), (KSS), (LTD), (MSFT), (NVT), (TGT), (WMT), (DAI), (KFT), Finerman's Firm And Finerman Own (HD); Finerman's Firm Owns S&P 500 Puts; Finerman's Firm Owns Russell 2000 Puts; Finerman's Firm Owns (BEAS); GE Is The Parent Company Of CNBC; NBC Universal Is The Parent Company Of CNBC