ECONOMICS
FINANCIAL MARKETS
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
1 only
|
|
|
2 and 3 only
|
|
|
1 and 3 only
|
|
|
1, 2 and 3
|
Detailed explanation-1: -A bear market is defined by a prolonged drop in investment prices-generally, a bear market happens when a broad market index falls by 20% or more from its most recent high. The reverse of a bear market is a bull market, characterized by gains of 20% or more.
Detailed explanation-2: -The trappers would profit from a spread-the difference between the cost price and the selling price. These middlemen became known as “bears, ” short for bearskin jobbers, and the term stuck for describing a downturn in the market.
Detailed explanation-3: -Stock prices are declining. Marked by a 20% or more decrease (over 2+ months) from previous highs. Investors often feel panicked and pessimistic. Often the general economy of the country (or at least the economic outlook) isn’t good.
Detailed explanation-4: -Rule #1: Adopt a Big Picture Perspective. Rule #2: Don’t Look at Your Portfolio. Rule #3: Just Keep Buying. Conclusion. 30-Sept-2022