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MBA Education & Careers Eco Fundas for you Stock Market Dealers BEAR BULL bear is a dealer on a stock exchange, dealer on a stock exchange, currency A currency or commodity market, who A or commodity market, who expects expects prices to fall. prices to rise is called a bull. A bear market is one in which a dealer is A bull market is one in which a dealer is more likely to sell securities, currency or more likely to be a buyer than a seller, even goods without having them. This is known to the extent of buying for his or her own as selling short or establishing a bear account and establishing a bull position. position. The bear hopes to close (or cover) such a short position by buying in at a lower A bull with a long position hopes to sell the price the securities, currency or goods purchases at a higher price after the market already sold. The difference between the has risen. A bull position or long position purchase price and the original sale price occurs when the bull owns securities. represents the successful bear’s profit. JOBBER A concerted attempt to force prices down by jobber is an independent dealer in a powerful bear (or a group of them) by A securities. He purchases and sells resorting to sustained selling is called a securities in his own name. He is not allowed bear raid. to deal with non-members directly. 34 February 2012 MBA Education & Careers ECO FUNDAS FOR YOU Stock Market Dealers CHICKEN PIG hickens are afraid to lose anything. igs are high-risk investors looking for CTheir fear overrides their need to make P the one ‘big’ score in a short period of profits and so they turn only to money-market time. Pigs buy on hot tips and invest in companies without doing their due diligence. securities or get out of the markets alltogether. Pigs get impatient, greedy, and emotional about their investments, and they are drawn While it’s true that you should never invest to high-risk securities without putting in the in something over which you lose sleep, you proper time or money to learn about these are also guaranteed never to see any return investment vehicles. if you avoid the market completely and never Professional traders love the pigs, as it is often take any risk. from their losses that the bulls and bears reap their profits. STAG stag is a speculator who buys a large A amount of shares in a new issue of shares (like an IPO – Initial Public Offering) if he thinks the price is likely to rise above the offer price when trading in that scrip begins on the stock exchange. A stag indulges in this kind of speculation with the hope to sell soon at profit. M E & C February 2012 35.

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Index Access, 87 Bank accounts, 75 Accounting fi rms, 69 Bankruptcy, 27–28, 53 Active trader, 7 Bank trust departments, 20 Aduddell Industries, Inc. Baruch College, 103 (ADDL), 127–129, Bear raid, 13 132–133 Bidding up shares, 104 Advice, getting and giving, 3–6, BigCharts.com, 37 36, 70–71, 166 Biotech companies, 152, 153 Airline stocks, 157–159 Biotech stocks, 19 Alcatel, 23 Bluefi re Associates, 106 Amazon, 104 Boiler rooms, 165 American Airlines Corp. (AMR), Boredom, 81 157–158 Breaking the back of a American Express, 164 stock, 16 American Stock Exchange Brokerage fi rms, 19, 20, (AMEX), 7, 141, 142, 154 76–78, 130 Amgen, 153 Broker-dealer, 3, 12 Amsterdam Stock Exchange Bucket shops, 165 (Beurs), 86 Budweiser, 164 Analyst, 5, 7,COPYRIGHTED 15, 25, 71, 91 Buffett, MATERIAL Warren, 164 Aptimus, Inc. (APTM), Bulletin board, 34, 144 109–121 Business condition, 13 initial public offering, 114 Business media, 90–91, 140 tender offer, 114–115, Business news, 113 117–119 Buy-and-hold strategy, 4, 75 Assets, 53, 54, 151 Buybacks, 13, 112–119 169 JJWBK198_Index[169-174].inddWBK198_Index[169-174].indd 169169 66/5/08/5/08 33:45:58:45:58 PPMM 170 Index Buying, 85, 137 Day-trading, 5 Buying power, reserving, 81 Dealers, 129, 130 Debt, 13, 53 Call options, 60, 61 Decimal pricing, vii Canada, 86 Delta Air Lines, 159 Capitalization, 13, 57, 101, Desirability of company, 111 111, 152 Diversifi ed portfolio, 18, 155 Carbontronics, 144 Downside exposure, 117 Cash holdings, 13, 151–153 Downside trading, 7 Certifi cates of deposit (CDs), 8, 75, 88 Electronic access, 4, 36, 137 Chapter 11 bankruptcy, 143 Electronic communications China, 33, 86 network (ECN), 77, 78, 105, Clean shell, 54, 55, 125 116, 128 Clinton Administration, 143 Electronic sorting and scanning CNBC, vii, 89 systems, 37 CNN, 91 Electronic trading, 3, 5 Coca-Cola, 7, 164 Employee stock ownership Cohen, Steven A., 93 plans, 152 Commodity exchange, vii England, 86 Common stock, 113 Equities markets, 4 Compensation, 113 Exchanges, vii, 7 Computerization, 167 eXegenics, Inc.
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