What term is used in the financial world to describe an investor who buys a security in the hope of selling it at a higher price, believing that the market will go up?
"an example of a bull as follows: Several bronze statues of bulls representing positive investor sentiment exist near the locations of several stock markets or brokerage houses, for example: Bull (stock market speculator) A Bull is a stock market speculator who buys a holding in a stock in the expectation that in the very short-term it will rise in value whereupon he will sell the stock to make a quick profit on the transaction. Strictly speaking the term applies to speculators who borrow money to fund such a purchase, and are thus under great pressure to complete the transaction before"
"Speculation Speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable in the near future. In finance, speculation is also the practice of engaging in risky financial transactions in an attempt to profit from ""short term fluctuations"" in the market value of a tradable financial instrument—rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, dividends, or interest. Many speculators pay little attention to the fundamental value of a security and instead focus purely on price movements. Speculation can in"
"Buy and hold Buy and hold, also called position trading, is an investment strategy where an investor buys stocks and holds them for a long time, with the goal that stocks will gradually increase in value over a long period of time. This is based on the view that in the long run financial markets give a good rate of return even while taking into account a degree of volatility. Buy-and-hold says that investors will never see such returns if they bail out after a decline. This viewpoint holds that market timing (i.e. the concept that one can enter the"
"trading strategy. Buy and hold Buy and hold, also called position trading, is an investment strategy where an investor buys stocks and holds them for a long time, with the goal that stocks will gradually increase in value over a long period of time. This is based on the view that in the long run financial markets give a good rate of return even while taking into account a degree of volatility. Buy-and-hold says that investors will never see such returns if they bail out after a decline. This viewpoint holds that market timing (i.e. the concept that one can"
"expectation that prices always rise. A period of rising prices may cause lenders to underestimate the risk of default. In the stock market, the greater fool theory applies when many investors make a questionable investment, with the assumption that they will be able to sell it later to ""a greater fool"". In other words, they buy something not because they believe that it is worth the price, but rather because they believe that they will be able to sell it to someone else at an even higher price. It is also called survivor investing. It is similar in concept to"
"Bull (stock market speculator) A Bull is a stock market speculator who buys a holding in a stock in the expectation that in the very short-term it will rise in value whereupon he will sell the stock to make a quick profit on the transaction. Strictly speaking the term applies to speculators who borrow money to fund such a purchase, and are thus under great pressure to complete the transaction before the loan is repayable or the seller of the stock demands payment on settlement day for delivery of the bargain. If the value of the stock falls contrary to"
"or note is normally remote. Investment in stocks, property, etc. in the hope of significant gain but with the risk of significant loss, i.e. ""speculation"", involves a level of risk which is greater than most investors would generally consider justified by the expected return. An alternative characterization of speculation is its short-term, opportunistic nature. In the early 1900s purchasers of stocks, bonds, and other securities were described in media, academia, and commerce as speculators. By the 1950s, the term investment had come to denote the more conservative end of the securities spectrum, while speculation was applied by financial brokers and"
"Investor An investor is a person that allocates capital with the expectation of a future financial return. Types of investments include: equity, debt securities, real estate, currency, commodity, token, derivatives such as put and call options, futures, forwards, etc. This definition makes no distinction between those in the primary and secondary markets. That is, someone who provides a business with capital and someone who buys a stock are both investors. An investor who owns a stock is a shareholder. The assumption of risk in anticipation of gain but recognizing a higher than average possibility of loss. The term ""speculation"" implies"
"those investments played a key role in the financial crisis of 2007–2010. Proposals made in the past to try to limit speculation - but never enacted - included: Speculation Speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable in the near future. In finance, speculation is also the practice of engaging in risky financial transactions in an attempt to profit from ""short term fluctuations"" in the market value of a tradable financial instrument—rather than attempting to profit from the underlying financial attributes embodied in the instrument such"
"Flight-to-quality A flight-to-quality, or flight-to-safety, is a financial market phenomenon occurring when investors sell what they perceive to be higher-risk investments and purchase safer investments, such as US Treasuries or gold. This is considered a sign of fear in the marketplace, as investors seek less risk in exchange for lower profits. Flight-to-quality is usually accompanied by an increase in demand for assets that are government-backed and a decline in demand for assets backed by private agents. More broadly, flight-to-quality refers to a sudden shift in investment behaviors in a period of financial turmoil whereby investors seek to sell assets perceived"
"and companies that regularly purchase equity or debt securities for financial gain in exchange for funding an expanding company. Less frequently the term is applied to parties who purchase real estate, currency, commodity derivatives, personal property, or other assets. Speculation, in the narrow sense of financial speculation, involves the buying, holding, selling, and short-selling of stocks, bonds, commodities, currencies, collectibles, real estate, derivatives or any valuable financial instrument to profit from fluctuations in its price as opposed to buying it for use or for income via methods such as dividends or interest. Speculation or agiotage represents one of three market"
"an investor profits from an increase in the price of the asset. Mathematically, the return from a short position is equivalent to that of owning (being ""long"") a negative amount of the instrument. (Nevertheless, one main discrepancy in the short against a long position is that the short position must exclude the dividends paid, if any.) A short sale may have a variety of objectives. Speculators may sell short hoping to realize a profit on an instrument that appears overvalued, just as long investors or speculators hope to profit from a rise in the price of an instrument that appears"
"Buy-write The term buy-write is used to describe an investment strategy in which the investor ""buys"" stocks and ""writes"" call options against the stock position. The writing of the call option provides extra income for an investor who is willing to forgo some upside potential. Investors have used exchange-listed options to engage in buy-write strategies since the 1970s, and descriptive articles were published in the Journal of Portfolio Management in 1978 by Henry Pounds and in 1980 by Yates and Kopprasch (see references section below). However, prior to 2002 there was no major benchmark for buy-write strategies. To help in"
"trading is where groups of investors fraudulently inflate the share price of a company, at which point they sell the shares they own for a profit. While this is illegal, the market consequences are usually minimal. In a smaller number of cases, circular trading is used in a way that has a direct impact on the success and failure of companies. In some cases, shareholders set thresholds for the price of shares at which they will stay invested within a company or leave it. Another example of this is where shareholders set a price threshold at which they will decide"
"to the new issue expecting the price of the stock to rise immediately upon the start of trading. Thus, stag profit is the financial gain accumulated by the party or individual resulting from the value of the shares rising. This term is more popular in the United Kingdom than in the United States. In the US, such investors are usually called flippers, because they get shares in the offering and then immediately turn around ""flipping"" or selling them on the first day of trading. The Government of Saudi Arabia is considering IPO of Saudi Aramco and selling around 5% of"
"when investors shift allocation of investment between asset types. For example, at one time, investors may move money from government bonds to ""tech"" stocks; at another time, they may move money from ""tech"" stocks to government bonds. In each case, this will affect the price of both types of assets. Generally, investors try to follow a buy-low, sell-high strategy but often mistakenly end up buying high and selling low. Contrarian investors and traders attempt to ""fade"" the investors' actions (buy when they are selling, sell when they are buying). A time when most investors are selling stocks is known as"
"agreement that they will purchase it back after a certain number of days, whether it increases or decreases in value. If an investor shorts their stock prior to the speculative attack and subsequent depreciation, the investor will then purchase the stock at a significantly lower price. The difference between the value of the stock when it was sold and when it was repurchased is the profit that the investor makes. Examples of this can be seen when George Soros shorted Thailand stocks prior to the speculative attack that lead to the Asian Financial Crisis in 1997 and the shorting of"
"Market sentiment Market sentiment (also investor attention) is the general prevailing attitude of investors as to anticipated price development in a market. This attitude is the accumulation of a variety of fundamental and technical factors, including price history, economic reports, seasonal factors, and national and world events. If investors expect upward price movement in the stock market, the sentiment is said to be bullish. On the contrary, if the market sentiment is bearish, most investors expect downward price movement. Market participants who maintain a static sentiment, regardless of market conditions, are described as ""permabulls"" and ""permabears"" respectively. Market sentiment is"
"halts to eliminate predatory behaviors of liquid traders. Flight-to-quality A flight-to-quality, or flight-to-safety, is a financial market phenomenon occurring when investors sell what they perceive to be higher-risk investments and purchase safer investments, such as US Treasuries or gold. This is considered a sign of fear in the marketplace, as investors seek less risk in exchange for lower profits. Flight-to-quality is usually accompanied by an increase in demand for assets that are government-backed and a decline in demand for assets backed by private agents. More broadly, flight-to-quality refers to a sudden shift in investment behaviors in a period of financial"
"them having the opportunity to sell, or the stock price rises to $10.00 and keeps going up, meaning the institutional investor could have sold at a higher price. Market impact In financial markets, market impact is the effect that a market participant has when it buys or sells an asset. It is the extent to which the buying or selling moves the price against the buyer or seller, i.e., upward when buying and downward when selling. It is closely related to market liquidity; in many cases ""liquidity"" and ""market impact"" are synonymous. Especially for large investors, e.g., financial institutions, market"
"available now at $10 or $30 or any other price. Some sports bettors try to make income from anticipating line changes rather than predicting event outcomes. Some traders concentrate on possible short-term price movements of a security rather than its long-term fundamental prospects. A classic investing example is a trader who has exposure limits, say he is not allowed to have more than $1 million at risk in any one stock. That doesn't mean he cannot lose more than $1 million. If he buys $1 million of the stock at $20 and it goes to $10, he can buy another"
"or government which raises capital by issuing either debt or equity. Debt and equity may be issued in various forms, such as bonds, notes and debentures for debt; and common or preferred shares for equity. Issues may be sold privately to investors, or sold to the public via the various markets described below. An investor is a person or corporate entity that makes an investment by buying and selling securities. There are two sub-categories: ""retail"" (persons) and ""institutional"" (investment managers and hedge funds). Investment managers are either ""investment companies"" such as mutual funds or ""investment advisers"" which invest for clients."
"Buying in (securities) In the securities market, buying in refers to a process by which the buyer of securities, whose seller fails to deliver the securities contracted for, can buy the securities from a third party and demand the difference in price from the original seller. Thus, the original seller need not deliver the sold security, but must provide the cash difference of the security sold. A buy in event occurs when the original counterparty, the seller, fails to make delivery on the actual security transacted. On the English stock exchange, a transaction by which, if a member has sold"
"Buying in (securities) In the securities market, buying in refers to a process by which the buyer of securities, whose seller fails to deliver the securities contracted for, can buy the securities from a third party and demand the difference in price from the original seller. Thus, the original seller need not deliver the sold security, but must provide the cash difference of the security sold. A buy in event occurs when the original counterparty, the seller, fails to make delivery on the actual security transacted. On the English stock exchange, a transaction by which, if a member has sold"
"buyer (betting that the price will go down) and buys the shares of the company being acquired (betting the price will go up). There are a number of ways in which proprietary trading can create conflicts of interest between a bank's interests and those of its customers. As investment banks are key figures in mergers and acquisitions, it is possible (though prohibited) for traders to use inside information to engage in merger arbitrage. Investment banks are required to have a Chinese wall separating their trading and investment banking divisions; however, in recent years, especially since the Enron scandal, these have"
"Securities fraud Securities fraud, also known as stock fraud and investment fraud, is a deceptive practice in the stock or commodities markets that induces investors to make purchase or sale decisions on the basis of false information, frequently resulting in losses, in violation of securities laws. Securities fraud can also include outright theft from investors (embezzlement by stockbrokers), stock manipulation, misstatements on a public company's financial reports, and lying to corporate auditors. The term encompasses a wide range of other actions, including insider trading, front running and other illegal acts on the trading floor of a stock or commodity exchange."
"seller on the open market. On the settlement date of the repo, the buyer acquires the relevant security on the open market and delivers it to the seller. In such a short transaction, the buyer is wagering that the relevant security will decline in value between the date of the repo and the settlement date. For the buyer, a repo is an opportunity to invest cash for a customized period of time (other investments typically limit tenures). It is short-term and safer as a secured investment since the investor receives collateral. Market liquidity for repos is good, and rates are"
"rise greatly, in fact, in theory it can rise infinitely, and such a rise is the short seller's loss). The put buyer's prospect (risk) of gain is limited to the option's strike price less the underlying's spot price and the premium/fee paid for it. The put ""writer"" believes that the underlying security's price will rise, not fall. The writer sells the put to collect the premium. The put writer's total potential loss is limited to the put's strike price less the spot and premium already received. Puts can be used also to limit the writer's portfolio risk and may be"
"together and buy or sell securities directly. For securities holders knowing that a secondary market exists in which their securities may be sold and converted into cash increases the willingness of people to hold stocks and bonds and thus increases the ability of firms to issue securities. There are a number of professional participants of a securities market and these include; brokerages, broker-dealers, market makers, investment managers, speculators as well as those providing the infrastructure, such as clearing houses and securities depositories. A securities market is used in an economy to attract new capital, transfer real assets in financial assets,"
"from investors that, in aggregate, amount to more money than the company needs or intends to raise. The term may be used informally to describe a state where there is more money available than the company needs. Subscription (finance) Subscription refers to the process of investors signing up and committing to invest in a financial instrument, before the actual closing of the purchase. The term comes from the Latin word ""subscribere"". An early form of subscription was praenumeration, a common business practice in the 18th-century book trade in Germany. The publisher offered to sell a book that was planned but"
"other words, the investor is seeking exposure to the asset in a long futures or the opposite effect via a short futures contract. Hedgers typically include producers and consumers of a commodity or the owner of an asset or assets subject to certain influences such as an interest rate. For example, in traditional commodity markets, farmers often sell futures contracts for the crops and livestock they produce to guarantee a certain price, making it easier for them to plan. Similarly, livestock producers often purchase futures to cover their feed costs, so that they can plan on a fixed cost for"
"often active in many markets around the world, constantly watch for arbitrage opportunities. One of the more-notable areas of arbitrage, called risk arbitrage or merger arbitrage, evolved in the 1980s. When a company plans to buy another company, often the share price of the buyer falls (because the buyer will have to pay money to buy the other company) and the share price of the purchased company rises (because the buyer usually buys those shares at a price higher than the current price). When an investment bank believes a buyout is imminent, it often sells short the shares of the"
"Put option In finance, a put or put option is a stock market device which gives the owner the right, but not the obligation, to sell an asset (the ""underlying""), at a specified price (the ""strike""), by a predetermined date (the ""expiry"" or ""maturity"") to a given party (the ""seller of the put""). The purchase of a put option is interpreted as a negative sentiment about the future value of the underlying stock. The term ""put"" comes from the fact that the owner has the right to ""put up for sale"" the stock or index. Put options are most commonly"