Question

Who are called 'Bears'?

Hint:

{Remember:} Bears pull prices DOWN (like a bear's paw swiping downward). They are pessimistic sellers.

Answer 1

Definition: In stock market terminology, 'Bears' are investors or traders who believe that the market or a particular stock will fall in value. They are pessimistic about future price movements and expect a downward trend. Characteristics of Bears:

• Pessimistic Outlook: They expect prices to decrease.
• Selling Sentiment: They sell securities (often borrowing shares they don't own) with the hope of buying them back at lower prices in the future (short selling).
• Caution: They anticipate market declines or economic downturns.
• Short Position: They typically take short positions (sell first, buy later).

Why the Name 'Bear'? The term comes from how a bear attacks—by swiping its paws downward. This downward motion symbolizes falling prices and a pessimistic market outlook. Bear Market: When bears dominate the market, it is called a "Bear Market"—a period of falling prices, pessimism, and often economic slowdown. Example: If a trader borrows and sells shares of HDFC Bank at ₹1,600 expecting the price to fall to ₹1,400 to buy them back at a lower price, they are acting as a bear. Bulls vs Bears - Comparison:

Aspect	Bulls	Bears
Outlook	Optimistic (prices will rise)	Pessimistic (prices will fall)
Action	Buy shares	Sell shares
Position	Long position	Short position
Market Phase	Bull Market (rising)	Bear Market (falling)
Symbol	Upward thrust of bull's horns	Downward swipe of bear's paw