Speculation; meaning, speculators, bull, bear and stage. - SS3 Commerce Past Questions and Answers - page 1

1

What is speculation in financial markets?

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A

Making investment decisions based on anticipated price movements

B

Long-term investment strategies for retirement planning

C

Saving money in a bank account

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2

Who are speculators in financial markets?

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A

Individuals or entities engaging in investment activities for profit

B

Government regulators overseeing market operations

C

Financial advisors providing investment advice to clients

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3

What does a bull market represent?

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A

Positive or optimistic market trend with rising prices

B

Negative or pessimistic market trend with falling prices

C

Stable market conditions with no price fluctuations

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4

What does a bear market indicate?

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A

Negative or pessimistic market trend with falling prices

B

Positive or optimistic market trend with rising prices

C

A market where no investors are actively participating

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5

At what stage of the market cycle do smart money investors begin selling their assets?

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A

Distribution stage

B

Accumulation stage

C

Uptrend stage

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6

What is the primary goal of speculators in financial markets?

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7

How does a bear market differ from a bull market?

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