Hammering is the rapid and concentrated selling of stock shares in the wake of an unexpected event that is perceived as extremely damaging to the company's short-term performance. The effect of hammering is a steep drop in the price of the stock.Hammering can be very harmful to a company's stock price, because it can cause panic among investors and lead to a sharp decline in share value. When large numbers of shareholders sell their stocks at once, it can create a downward spiral that drives prices even lower. This can be very damaging to companies that are already struggling, and may lead to bankruptcy or liquidation.While hammering may provide short-term benefits for those who sell their stocks quickly, it is generally not beneficial for companies or their shareholders in the long run. In fact, it can often do more harm than good by causing widespread panic and devaluing company assets. So if you're thinking about participating in a hammering event, remember that there may be long-term consequences for your actions.
