gs1easy
In the parlance of financial investments, the term 'bear' denotes
- A.An investor who feels that the price of a particular security is going to fall
- B.An investor who expects the price of particular shares to rise
- C.A shareholder or a bondholder who has an interest in a company, financial or otherwise
- D.Any lender whether by making a loan or buying a bond
▶ Answer & Explanation
Correct answer: A. An investor who feels that the price of a particular security is going to fall
In financial markets, 'bear' is used to describe a market trend or an investor characterized by pessimism and the expectation of declining prices. Conversely, a 'bull' market or investor anticipates rising prices. The terms originate from the way these animals attack; a bear swipes downwards with its paws, while a bull thrusts its horns upwards.
Source: UPSC gs1 2010