In the parlance of financial investments, the “bear” denotes:
- An investor who feels that the price of a particular security is going to fall
- An investor who expects the price of particular shares to rise
- A shareholder or a bondholder who has an interest in a company, financial or otherwise
- Any lender whether by making a loan or buying a bond
Explanation
Option (a) is correct
- In financial markets, a bear refers to an investor who expects prices of securities to decline. Such investors typically sell securities anticipating that they can buy them back later at lower prices. This terminology is well established in financial literature and contrasts with a bull, who expects prices to rise. The term does not denote ownership, lending, or general financial interest.
