Which among the following statements are correct regarding share market operations?

1. Bear is a person who speculates share prices to fall in future and so sells his shares and earns a profit.
2. Bull is a person who speculates share prices to go up in future so either stops selling selected shares for a time period.
3. A Bull increases the number of shares in a stock market.
4. A Bear creates a scarcity of shares in the stock market.

The correct statements are:

Question

Which among the following statements are correct regarding share market operations?

1. Bear is a person who speculates share prices to fall in future and so sells his shares and earns a profit.

2. Bull is a person who speculates share prices to go up in future so either stops selling selected shares for a time period.

3. A Bull increases the number of shares in a stock market.

4. A Bear creates a scarcity of shares in the stock market.

The correct statements are:

Quintessence Classes · Accepted Answer

The correct answer is 1 and 2. This is a well-framed conceptual question for testing aspirants on the foundational terminology of stock market behaviors. Here is a clear breakdown of why the statements evaluate this way:Statement 1 is correct: A "Bear" is a market participant who expects share prices to fall. They sell their current holdings with the intent to buy them back later at a lower price, thereby securing a profit from the decline.Statement 2 is correct: A "Bull" is an investor who expects share prices to rise. They buy shares and hold onto them, effectively stopping the sale of those selected shares for a period of time to maximize future returns.Statement 3 is incorrect: A Bull does not increase the number of shares in the stock market. Because Bulls buy and hold shares, they actually absorb the available supply, taking those shares out of active circulation and reducing the number available for trading.Statement 4 is incorrect: A Bear does not create a scarcity of shares. By aggressively selling off their holdings, Bears flood the market with shares, actively increasing the supply available to other traders.

Answer

1, 2 and 3

Answer

1, 3 and 4

Answer

1, 2, 3 and 4

Answer & Explanation

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JKPSC JKAS 2022 Prelims

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