Animals at the Stock Market

 

As most everyone knows the stock market is that place “where the shares are issued and traded either through exchanges or over the counter markets” at an agreed price. These shares are shares or securities listed on the stock exchange.

Stock market is one of the main items in a market economy. This is one of the most important sources for companies to raise money for their expansion or recapitalization.

Sometimes, the market is divided into two parts, the primary and the secondary market. New issues are first offered to the primary market. The following traded on the secondary market.

 

Q: Where are the animals that come from?

They say on Wall Street, bulls and bears are in a constant battle. Actually, the animal names are just aliases to specific situations and types of people in the stock business.

Bull

When everything in the economy is in TIPTOP form, when people have a job, when gross domestic product (GDP) is increasing and the population increases, there is a bull market.

This is the time when everything comes up roses in the stock market. This is also the easiest time of year to pick shares because everything goes up.

Bull markets can not last forever, though. As things were looking good in the bull market of the season, it can sometimes lead to dangerous situations if stocks to be overvalued.

The “bull” connotation had jumped the fence and is now in the mainstream lingo. If a person is optimistic and believes that stocks will rise, that person is called a bull. His attitude had been called all these years to have a “bullish outlook.” “

 

Bear

The bear is the opposite of bull. In a bear market, recession looming and prices of stocks fall. Bear markets have a tough time for investors to pick profitable stocks.

Some experienced stockbrokers sometimes resort to making money. They would use a technique called “short sales”. “

Another strategy is to wait out the bear market at hand, anticipating the return of the bull market. If a person is pessimistic, or they think stocks will fall again, this person is called a “bear” and is now labeled as having a “bearish outlook”.

 

Chicken

Chickens are people who are deathly afraid of losing something. Their fear blankets their need to make a profit. Accordingly, they would turn only to money-market securities. (Some get out of the market completely.) )

While it is true that one should never invest in something that you will lose sleep on, it is also true that you will never see any return if you avoid the market completely, and not take chances.

 

Pigs

Professional traders love the pigs from their losses as bulls and bears to collect their winnings.

Pigs are the investors who love to take high risks, and are always looking for that one big score in a short period of time. They buy on hot tips and invest without doing thorough research.

Usually, they are impatient and greedy about their investments. They’re usually looking for high-risk securities without the time and effort to learn about their investments

Provided these animals’ characteristics in the stock market, what kind of investor would you be?

 

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