Q. Which of the following is not a speculator in the Stock Exchange?
- Bull
- Bear
- Broker
- Stag
Answer: Broker
There are 4 types of speculators in a stock exchange. They are Bulls, Bears, Stags and Lame Ducks.
Bull- Fearless Speculator
Bear- Fearful Speculator
Stag- Crowded Speculator
Lame Duck- Failed Speculator
What is a 'Speculator'?
A speculator is a person who trades derivatives, commodities, bonds, equities or currencies with a higher than average risk in return for a higher-than-average profit potential. Speculators take large risks, especially with respect to anticipating future price movements, in the hope of making quick, large gains.There are 4 types of speculators in a stock exchange. They are Bulls, Bears, Stags and Lame Ducks.
Bull- Fearless Speculator
Bear- Fearful Speculator
Stag- Crowded Speculator
Lame Duck- Failed Speculator
4 Types of Speculators in Stock Exchanges
Bull
He is a speculator who purchases various types of shares. He purchases to sell them at higher prices in future. He may sell the shares and securities before coming in possession. If the price falls then he suffers a loss.
Bear
Bear
He is always in a position to dispose of securities which he does not possess. He makes the profit on each transaction. He sells the various securities for the objective of taking advantages of an expected fall in prices.
Lame Duck
Lame Duck
When bear fails to meet the obligations he struggles to meet finance like the Lame Duck. This may happen when he has been concerned. Generally, a bear agrees to dispose off certain shares on specific date. But sometimes he fails to deliver due to non-availability of shares in the market. If the other party refuses to postpone the delivery them lame duck suffers heavy losses.
Stag
Stag
He is also a speculator. He purchases the shares of newly floated company and shown himself a genuine investor. He is not willing to become an actual shareholder of the company. He purchases the shares to sell them above the par value to earn premium. A stag also suffer a loss.
There are four types of speculators who are active on the stock exchanges in India. They are known as Bull, Bear, Stag, and Lame Duck. These names have been derived from the animal world to bring out the nature and working of speculators
ReplyDelete