Saturday, June 26, 2010

Stock Market Dealers

Stock Markets always remembers us Bull and Bear. But there are many other people who are not so familiar to common investors. Following is the brief introduction of those special people in the market:


Bear

A bear is a dealer on a stock exchange , currency or commodity market, who expects prices to fall.

A bear market is one in which a dealer is more likely to sell securities, currency of goods without having them. This is know as selling short or establishing a bear position. The bear hopes to close (or cover) such a short position by buying in at a lower price the securities, currency or goods already sold. The different between the purchase price and original sale price represents the successful bear’s profit.

A concerted attempt to force prices down by a powerful bear (or a group of them) by resorting to sustained selling is called a bear raid.

Bull

A dealer on a stock exchange, currency or commodity market, who expect prices to rise is called a bull.

A bull market is one in which a dealer is more likely to be a buyer than a seller, even to the extent of buying for his or her own account and establishing a bull position.

A bull with a long position hopes to sell the purchases at a higher price after the market has risen. A bull position or long position occurs when the bull owns securities.
Source: http://www.indianmoney.com/article-display.php?cat_id=1&sub_id=12&aid=18&ahead=Stock%2520Market%2520Dealers

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