Types of speculators

The topic explains different types of speculators in the securities market.

1. Capital market and investment management TYPES OF SPECULATORS

2. A speculator is one who deals in securities and takes calculated risks based on anticipated future price movements. Speculation within a reasonable level and not involving any unfair trade practices is good to the market. Types of speculators

3. A Bull is an optimistic speculator. He buys shares with an expectation of selling them at a higher price in the future. A bull attacks by trying to throw the enemy up into the air by using its horns. Optimism, Investor confidence and expectation of strong results. 1.BULLS

4. BULL AND BEAR

5. A bear is a speculator who sells shares in anticipation of fall in prices. If the prices fall as expected, he buys the securities at lower prices and makes profits. A bear which tries to press down its enemy to the ground while attacking. Low investor confidence and widespread pessimism. Number of sellers will be more compared to buyers. 2.BEARS

6. STAG & LAME DUCK

7. Applicants who do not get allotment will be ready to pay a higher price than the issue price. Bull speculators apply for large quantity of shares during new issues they are stags. Stags, when getting allotment off load their shares at profit. Speed in action resembling a stag. 3.STAGS

8. A bear speculator who unable to fulfil his commitment to the counter party is a Lameduck . A bear sells securities without possessing faces heavy loss when market prices go up. On settlement date securities are not available from the market for settling the trade. 4.Lame duck