Match each type of stock exchange speculator listed on the left with its correct operational description on the right.
- BullA speculator who buys securities expecting market prices to rise, intending to resell them later at a higher price for a profit.
- BearA speculator who sells securities expecting market prices to fall, intending to buy them back later at a lower price.
- StagA speculator who applies for new share issues expecting the allotment price to rise upon listing so they can sell immediately for a quick gain.
- Lame DuckA speculator who defaults or is unable to fulfill their contractual settlement obligations due to adverse price movements.
Answer
Bull matches with the speculator who buys expecting prices to rise; Bear matches with the speculator who sells expecting prices to fall; Stag matches with the speculator who subscribes to new issues for immediate resale profit; Lame Duck matches with the speculator unable to meet settlement commitments.
Each speculator is accurately paired with their distinct market behavior: Bulls buy in anticipation of rising prices, Bears sell expecting falling prices, Stags target new issue subscriptions for fast listing profits, and Lame Ducks are speculators failing to meet settlement obligations.
Step-by-Step Solution
Key Concept
Stock Exchange Speculators and Trading Operations
Estimated Time:1m 30s