A speculator on the stock exchange market who sells securities for the fear of a fall in their prices is called?

Assessment: WAEC SSCE - Commerce - 2001 (Objective) Subject: Commerce

Question 1 Report

A speculator on the stock exchange market who sells securities for the fear of a fall in their prices is called?
Answer Details
A speculator on the stock exchange market who sells securities for the fear of a fall in their prices is called a "bear". This term comes from the way a bear swipes its paws downward to attack, as if pushing prices down. In the stock market, a bear is someone who expects the price of a particular stock or the market as a whole to decline, and therefore sells securities or bets against them. This is often done by short selling, which involves borrowing and selling securities, hoping to buy them back at a lower price to make a profit.

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