What is a whale in regard to the stock market?
A whale is an individual or company that has enough money and power to directly influence the price of a stock in a positive or negative way.
It is uncertain where the term whale came from, however the nickname speaks for itself. A blue whale is the largest mammal on the Earth. A stock market whale is likely one of the largest speculators in an individual asset. A whale has the mass to move large amounts of water. A stock market wall has the funds to move share prices up or down.
Historically speaking, Jacob Little was an early 19th century Wall Street investor and an early example of a whale. He died penniless, however during his life he amassed tremendous wealth through artificially manipulating markets to his own benefit.
Like it or not, whales are swimming in the stock market on a daily basis. Some investors read charts to track high volume buys or sells to chase a whale. This is sometimes referred to as “riding the whale tail”.
Whale sightings are commonly mentioned in online forums and sometimes requested. This is also known as whale watching. Investors will occasionally mention that they need a whale to boost a stock price up.
”Whales are taking their money to cover their loses, buy the dips!”
“Whales are manipulating the stock market to shake off the paper hands.”
“Just spotted some 500K whale action coming in to help us!”