Practicing Success

Target Exam

CUET

Subject

Business Studies

Chapter

Financial Markets

Question:

Identify the trend in the stock market when equity shares are more easily sold even at higher price.

Options:

Bearish

Bullish

Horse trading

Badla

Correct Answer:

Bullish

Explanation:

In a bullish market investors hopes that the prices of shares will rise further. Thus, shares are purchased even at a higher price because the purchaser hopes for making a profit in future from these shares.

Some Common Stock Market Terms

BOURSES is another word for the stock market.

BULLS and BEARS – The term does not refer to animals but to market sentiment of the investors. A Bullish phase refers to a period of optimism and a Bearish phase to a period of perssimism on the Bourses. When equity shares are more easily sold even at higher prices, it indicates that there is a strong demand for stocks and that investors are optimistic about the future of the stock market. This can lead to a bull market trend.


BADLA – This refers to a carry forward system of settlement, particularly at the BSE. It is a facility that allows the postponement of the delivery or payment of a transaction from one settlement period to another.

ODD LOT TRADING – Trading in multiples of 100 stocks or less.

PENNY STOCKS – These are securities that have no value on the stock exchange but whose trading contributes to speculation.