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Stock Market Dealers


Stock Markets always remembers us Bull and Bear. But there are many other people who are not so familiar to common investors. Following is the brief introduction of those special people in the market :

Bear

A bear is a dealer on a stock exchange , currency or commodity market, who expects prices to fall. A bear market is one in which a dealer is more likely to sell securities, currency of goods without having them. This is know as selling short or establishing a bear position. The bear hopes to close (or cover) such a short position by buying in at a lower price the securities, currency or goods already sold. The different between the purchase price and original sale price represents the successful bear’s profit. A concerted attempt to force prices down by a powerful bear (or a group of them) by resorting to sustained selling is called a bear raid.

Bull

A dealer on a stock exchange, currency or commodity market, who expect prices to rise is called a bull. A bull market is one in which a dealer is more likely to be a buyer than a seller, even to the extent of buying for his or her own account and establishing a bull position. A bull with a long position hopes to sell the purchases at a higher price after the market has risen. A bull position or long position occurs when the bull owns securities.

Chicken

Chicken are afraid to lose anything. Their fear overrides their need to make profits and so they turn only to money-market securities or get out of the markets all together. While it’s turn that you should never invest into something over which you lose sleep, you are also guaranteed never to see any return if you avoid the market completely and never take any risk.

Jobber

A jobber is an independent dealer in securities. He purchases and sells securities in his own name. He is not allowed to deal with non-members directly.

Pig

Pigs are high-risk investors looking for the one ‘big’ score in a short period of time. Pigs buy on hot tips and invest in companies without doing their due diligence. Pigs get impatient, greedy, and emotional about their investments, and they are drawn to high-risk securities without putting in the proper time or money to learn about these investment vehicles. Professional traders love the pigs, as it is often from their losses that the bulls and bears reap their profits.

Stag

A stag is a speculator who buys a large amount of shares in a new issues of shares (like as IPO-Initial Public Offering) if he thinks the price is likely to rise above the offer price when trading in that scrip begins on the stock exchange. A Stag indulges in this kind of speculation with the hope to sell soon at profit.

Capital Markets