Types of Speculators

Traders engaged in speculative activity in the stock market are identified by different names based on the type of activity they in general employ in. The eminent among them are bears, bulls, lame duck and stag.

Bull

A trader who awaits a rise in price of securities is referred as a bull. Therefore, he takes a long position with respect to securities. He involves in long buy predicting a rise in prices of securities. The bulls will be able to make profit only if the prices rise as predicted, otherwise they suffer loss.

Bear

A bear is a skeptic who expects a decline of securities. Therefore, by engaging in short sales, he takes a short position on securities. When prices decline, he try to cover up his short position by buying the securities at lower prices. He may involve in a bear raid so as to bring down the prices of securities.

Lame Duck

A lame duck is a bear who is involved in a short sale but is not able to meet his commitment to deliver the securities sold by him due to hike in prices of securities subsequent to the short sale. He is said to be clambering like a lame duck.

Stag

A stag is a trader who applies for shares in the new issues market just like a genuine investor. A stag is an optimist like the bull. He expects a hike in the prices of securities that he has applied for. He predicts that when the new shares are listed in the stock exchange for trading, they would be quoted at a premium, above their issue price. 

Stock Exchange tutoring - assignment help

Are you searching finance tutors? Having tough problems in portfolio management theory and questions? Need help with portfolio management homework & assignments? You are right place. Finance tutors at Expertsmind.com are very experienced and talented, they have excellent knowledge and skills to solve any kind of resonating and complex problems in finance subjects. We at Expertsmind.com offers portfolio management assignment help, homework help and writing paper help and tutoring anytime from anywhere for 24x7 hours.