Bears

Bears are stockmarket animals who just happen to be pessimists - reckoning that share prices (or any other type of investment) are going to fall. So a City dealer who holds shares in XYZ plc will want to dispose of his holding, before the price falls.

In a 'bear market' the general sentiment is that prices are going to fall and the majority of dealers will be selling as quickly as possible for fear of holding shares that will diminish in value.

Bears, like 'bulls', drive the market. Because of the herd instinct and a fear of being left out, the stockmarket often over-reacts, rising further than would seem justified. See Also:

Online share dealing service Stockmarket Centre

Last Updated: May 2007 © Moneyextra.com

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