Speculation; meaning, speculators, bull, bear and stage. - SS3 Commerce Past Questions and Answers - page 1
What is speculation in financial markets?
Making investment decisions based on anticipated price movements
Long-term investment strategies for retirement planning
Saving money in a bank account
Making investment decisions based on anticipated price movements
Who are speculators in financial markets?
Individuals or entities engaging in investment activities for profit
Government regulators overseeing market operations
Financial advisors providing investment advice to clients
Individuals or entities engaging in investment activities for profit
What does a bull market represent?
Positive or optimistic market trend with rising prices
Negative or pessimistic market trend with falling prices
Stable market conditions with no price fluctuations
What does a bear market indicate?
Negative or pessimistic market trend with falling prices
Positive or optimistic market trend with rising prices
A market where no investors are actively participating
At what stage of the market cycle do smart money investors begin selling their assets?
Distribution stage
Accumulation stage
Uptrend stage
What is the primary goal of speculators in financial markets?
The primary goal of speculators is to make profits from anticipated price movements by buying and selling assets in the market.
How does a bear market differ from a bull market?
A bear market represents a negative or pessimistic market trend with falling prices, while a bull market indicates a positive or optimistic trend with rising prices. Bear markets are characterized by increased investor pessimism, while bull markets reflect investor confidence.