What does gay bear mean in stocks? GAY BEAR means “Someone who expects a stock to decline or a stock shorter.” In the financial market, a bear is a person who expects a stock to decline. Many traders dislike bears because they’re people who make money from other people’s misery (when a stock declines).
What does bear investment mean? A bear is an investor who believes that a particular security, or the broader market is headed downward and may attempt to profit from a decline in stock prices. Bears are typically pessimistic about the state of a given market or underlying economy.
Why are investors called bears? The trappers would profit from a spread—the difference between the cost price and the selling price. These middlemen became known as “bears,” short for bearskin jobbers, and the term stuck for describing a downturn in the market.
How do bear traders make money? Bearish traders believe that a market will soon drop in value, and will attempt to profit from its drop. They will usually do this by short selling the market. This puts them in contention with bulls, who will buy or go long on a market in the belief that doing so will return a profit.