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.