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While they may sound strange at first, understanding their meanings is crucial to making investment and personal finance decisions. You may be interested in Master in Finance and Digital Banking INDEX OF CONTENTS But what is bullish and bearish? Both concepts come respectively from bull and bear and describe both stock market actions and the attitudes of the investor himself. Interesting, right? The terms describe situations related to market trends and the two animals are used to name situations related to the bull market and the bear market .
What is the term "Bullish" in finance? That the stock market ID Number List always closes higher is typical of “bull” stocks. With bullishness , there are no negative attitudes or actions, quite the opposite. This term is used to describe financial situations in which the value of an asset, stock index or commodity is trading on the rise. Investors who faithfully believe that the price of shares will increase and behave in a completely optimistic manner are said to be “bullish” investors .
That is, they believe that the price of the stock will rise and they will have paid for the right to buy the stock at a specific price known as the exercise price or strike price. An investor who has sold the put right is also considered bullish on that particular stock. the stock and therefore has faith that the price of the stock will rise. However, the bear, despite being big and strong like the bull, has other financial characteristics and attitudes. What is the term “Bearish” in finance? On the other hand, the term “Bearish” is opposed to the optimism of “Bullish” and represents a pessimistic or negative outlook towards an asset or the market as a whole.
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