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
Show answer
A bear expects prices to slide and therefore sells, hoping to buy the same security back cheaper, which is why a falling market is called a bear market.
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