In the parlance of financial investments, the terms 'bear' denotes

The correct answer is An investor who feels that the price of a particular security is going to fall.

 Key Points

• Bear is a speculator who sells shares in anticipation of fall operator prices to buy them back and thus make a profit.

 Important Points

• Bear Market:-
  • A bear market refers to a market where share prices are continuously declining.
  • Its downward trend makes investors believe that the trend will continue, which, in turn, perpetuates the downward spiral.
  • It is considered riskier to invest in a bear market, as many equities lose value.
  • Thus, most investors withdraw their money from the markets.
  • During a bear market, the economy slows down and unemployment rises as companies begin laying off workers.
• Bull Market:-
  • A bull market refers to a market that experiences a sustained increase in market share prices.
  • It ensures investors that the uptrend will continue over the long term.
  • It signifies that the country's economy is strong and employment levels are high.
• Debt Instruments: Debt instrument represents a contract whereby one party lends money to another on pre-determined terms with regards to rate and periodicity of interest, repayment of principal amount by the borrower to the lender. Bonds and debentures are the major debt instruments.
• A bond is a financial security issued by a borrower to avail long-term funds.
• Equity Market: Equity, also called shares or scripts, is the basic building block of a company. A company’s ownership is determined on the basis of its shareholding.