In the parlance of financial investments, the term ‘bear’ denotes:
✓ Correct answer: a) An investor who feels that the price of a particular security is going to fall
ExplanationIn financial terminology, a “bear” refers to an inves- tor who anticipates that the price of a particular security or the overall market will decline.Acting on this belief, such in- vestors may engage in strategies like short selling, where they sell securities they do not currently own with the intention of re- purchasing them later at a lower price, thereby securing a profit.Options (b), (c) and (d) are incorrect:An investor who expects prices to rise is called a bull, not a bear.Bulls are optimistic about the market and buy securities with the expectation of selling them at higher prices in the future.A shareholder or bondholder is simply an investor who owns shares or bonds, regardless of their market outlook.A lender or bondholder is not necessarily a bear.A bear is specifically an investor with a pessimistic outlook on the market or a security.372
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