In the parlance of financial investments, the term 'bear' denotes
A
An investor who feels that the price of a particular security is going to fall
B
An investor who expects the price of particular shares to rise
C
A shareholder or a bondholder who has an interest in a company, financial or otherwise
D
Any lender whether by making a loan or buying a bond
Correct Answer: Option A
Explanation
1. In the context of financial investments, particularly stock markets, the terms 'bear' and 'bull' describe market sentiment and investor expectations.
2. A 'bear' is an investor who believes that the market, a specific security, or an asset class is likely to decline in price.
3. Bears anticipate falling prices and may profit from a decline, for example, by short selling.
4. Option (A) correctly defines a 'bear' as an investor who feels that the price of a particular security is going to fall.
5. Option (B) describes a 'bull', an investor who expects prices to rise.
6. Option (C) describes a stakeholder (shareholder or bondholder) in general.
7. Option (D) describes a lender or creditor.