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Q28 (IAS/2010) Economy › Industry, Infrastructure & Investment › Investment vehicles Answer Verified

In the parlance of financial investments, the term 'bear' denotes

Result
Your answer: —  Ā·  Correct: A
Explanation

In investment parlance a ā€œbearā€ refers to an investor who expects prices to decline and acts with pessimism about future returns. Specifically, a bear (or being bearish) denotes the belief that the price of a stock or market will decrease over time, often accompanying broader ā€˜bear market’ periods of falling prices and negative sentiment. This contrasts with a ā€œbull,ā€ who is optimistic and expects rising prices. Thus the term ā€œbearā€ describes an investor’s expectation of price falls for a particular security or the market in general, matching option 1.

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