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In the parlance of financial investment, the term *bear’ denotes
Explanation
In financial investment parlance, a 'bear' is an investor who expects the price of a particular security or the market as a whole to decline [1]. This pessimistic outlook is termed 'bearish'. The name is metaphorically derived from the way a bear attacks by striking its paws downward. A bear market is formally characterized by a sustained period of falling asset prices, typically defined by a drop of 20% or more from recent highs. During such periods, investor confidence is low, and widespread pessimism often leads to selling pressure as investors attempt to limit their losses. Conversely, an investor who expects prices to rise is known as a 'bull' [2]. While bears anticipate capital losses or seek to profit from falling prices through strategies like short selling, bulls remain optimistic about market growth.
Sources
- [1] https://www.investopedia.com/insights/digging-deeper-bull-and-bear-markets/
- [2] https://en.wikipedia.org/wiki/Market_trend
SIMILAR QUESTIONS
In the parlance of financial investments, the term 'bear' denotes
Rise in the price of a commodity means
When a fall in price of a commodity reduces total expenditure and a rise in price increases it, price elasticity of demand will be :
The price fluctuations of 4 scrips in a stock market in the four quarters of a year are shown in the table below. Four different investors had the following portfolios of investment in the four companies throughout the year :
Portfolios
Investor 1 : 10 of A, 20 of B, 30 of C and 40 of D
Investor 2 : 40 of A, 10 of B, 20 of C and 30 of D
Investor 3 : 30 of A, 40 of B, 10 of C and 20 of D
Investor 4 : 20 of A, 30 of B, 40 of C and 10 of D
Stock Market Performance
| I Quarter | II Quarter | III Quarter | IV Quarter
Scrip A | Up 10% | Down 15% | Up 10% | Down 10%
Scrip B | Up 2% | Up 1% | Up 2% | Up 2%
Scrip C | Up 1% | Up 1% | Down 5% | Down 1%
Scrip D | Up 20% | Down 15% | Up 30% | Down 10%