In the parlance of financial investments, the term ‘bear’ denotes
- AAn investor who feels that the price of a particular security is going to fallCorrect
- BAn investor who expects the price of particular shares to rise
- CA shareholder or a bondholder who has an interest in a company, financial or otherwise
- DAny lender whether by making a loan or buying a bond
Explanation
In the context of the stock market, a bear is an investor who has a pessimistic outlook on the market or a specific security. They believe that prices are likely to fall in the near future. Because of this expectation, they may sell their holdings or engage in short selling to profit from the anticipated decline. The term is derived from the way a bear attacks by swiping its paws downward, symbolizing falling prices. In contrast, a bull expects prices to rise, similar to how a bull tosses its horns upward. Therefore, option A is the correct definition.
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