2009年2月2日月曜日

Financial Vocabulary - Bull and Bear


A Bear is a mammal found in Asia, America, and Europe. One of its most valuable assets is its skin. Bear-skin was also an asset traded in Europe 300 years ago. Sometimes Bear-skins were traded before they arrived, by ship, from America. Sometimes the ships bearing the Bear-skins failed to arrive. In these cases, the value of the bear-skins, since traders had sold skins they did not yet have, ended up to be (being) much less than the traders had anticipated (forseen), leading to a trading loss, . In the modern stock market, traders, anticipating (forseeing, hoping for) a falling (declining) stock market, are still able to sell assets they do not have, a practice called "shorting." In memory (acknowledgment) of the Bear-skins that never arrived, a stock that is declining (falling, going lower) is said to be in a Bearish Trend. A market that has entered an extended fall (decline) is called (termed) a "Bear Market." Bears, unlike Bulls, are not domestic (tame) animals. The Bear Market is much more dangerous than the Bull, although it is still, potentially (possibly) profitable to trade.

(to be continued)

ビル先生から