BACHELOR OF BUSINESS ADMINISTRATION

BUSINESS ADMINISTRATION

FINANCIAL MANAGEMENT

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
During a bearish phase, equity shares are more easily sold even at higher price.
A
True
B
False
Explanation: 

Detailed explanation-1: -To take a bearish position, many traders will short sell. Short-selling is a way of trading that returns a profit if an asset drops in price. Traditionally, if you were short-selling stock, for example, you would borrow some stock from your broker, and immediately sell it at the current market price.

Detailed explanation-2: -When investors are bearish on an individual stock, that sentiment is unlikely to affect the market as a whole. But when a market or index turns bearish, almost all stocks within it begin to decline, even if individually they’re reporting good news and growing earnings.

Detailed explanation-3: -Bullishness is a sentiment or mindset adopted by a trader, thinking securities will move up in price. The opposite of this is bearishness, which is the sentiment that securities and markets are likely to move down in price.

Detailed explanation-4: -To help remember that bearish means falling prices, think of a bear clawing down on its prey. A bear market is essentially the opposite of a bull market, meaning that it is a prolonged period of declining prices. A bear market generally occurs when prices have declined by at least 20 percent from a recent high.

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