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Karen wants to buy stock, but is worried about the current "bear market." What does this mean?
A.that many investors are selling their stocks in anticipation of lower profits
B.that many investors are buying stocks in anticipation of higher profits
C.that protits from stocks are rising, making it-a good time to buy
D. that profits from stocks are falling, making it a good time to buy

Sagot :

Samawati

Answer:

A.that many investors are selling their stocks in anticipation of lower profits

Explanation:

In stock market terminologies, a bear market is a selling market. If the traders' sentiments are to sell a stock, tell the market for the stock is referred to as a bear market.

Generally, when a company is performing well financially, its stock price will appreciate.  Investors will buy its stocks in anticipation of increased dividends and selling the stocks at a higher price. Should investors anticipate a loss, they will start selling the stocks. Karen is concerned with the current bear market as it signals the stocks are likely to yield reduced earnings.

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