In the parlance of financial investment, the term *bear denotes

examrobotsa's picture

Submitted by examrobotsa on

Q: 111 (CDS-II/2012)
In the parlance of financial investment, the term *bear’ denotes

question_subject: 

Economics

question_exam: 

CDS-II

stats: 

0,170,60,170,36,13,11

keywords: 

{'investor': [0, 0, 0, 1], 'bear': [0, 0, 1, 0], 'financial investment': [0, 0, 0, 1], 'shareholder': [0, 0, 1, 1], 'lender': [0, 0, 1, 2], 'term': [28, 1, 9, 27], 'interest': [1, 3, 3, 15], 'particular share': [0, 0, 0, 1], 'loan': [1, 0, 1, 6], 'denotes': [1, 1, 2, 3], 'particular security': [0, 0, 1, 1], 'company': [2, 2, 8, 11]}

The correct answer is option 1 - an investor who feels that the price of a particular security is going to fall.

In the context of financial investment, the term "bear" refers to an investor who has a pessimistic outlook and believes that the price of a particular security, such as a stock or bond, will decrease in value. Bears are often characterized by their negative sentiment and anticipation of market downturns. They may take actions such as selling their holdings or short selling to profit from the expected decline in prices.

It is important to understand that bears are the opposite of bulls. Bulls are investors who have an optimistic view and expect prices to rise. The difference between bears and bulls reflects the two opposing perspectives in the market.

Options 2, 3, and 4 are incorrect. Option 2 refers to an investor who expects the price of a particular share to rise - this is the definition of a bull, not a bear. Option 3 refers to a shareholder who has an interest in a company, which is unrelated to the concept of bears. Option 4 refers to any lender, which is not directly related to the term "bear" in financial investment.