Saturday Finances—Animal Names for Stock Market Events

I see a bear...

The Wall Street Zoo


Bear Market  A market condition in which the prices of securities are falling.

Dead Cat Bounce  A temporary recovery from a prolonged decline or bear market followed by a continuation of the downtrend.

Bull Market  A financial market of a group of securities in which prices are expected to rise.

Stags  A category of market participants who are not interested in a bull or bear run.  They buy shares of a company's initial public offering (or IPO) & sell as soon as the stock is listed & trading commences.

Chickens  Individuals who are fearful of the stock market & stay away.  Fear overrides their need to make profit, so they stick to conservative financial instruments such as bonds, bank deposits & CDs.

Pigs  Individuals who overly embrace risk.  These individuals are impatient, willing to take high risks, and make investments based on hot tips. 

Wolves  Individuals who employ criminal &/or unethical means to make money.  A "wolf market" is sometimes used to describe the acts of various individuals working together to manipulate the market.

Dog  A "dog" is a stock that is a chronic underperformer & a drag on a portfolio.  A "dog" can also be a business with a small market share in a mature industry.  It does not generate a strong cash flow, nor does it require a hefty investment like a company with a larger market share & better performance.

Cash Cow  The division within a company that has a large market share within a mature industry.  Also, a business, product or asset that once acquired & paid off will produce consistent cash flow over its lifespan.

Ostriches  Individuals who stick their heads in the sand during bad markets hoping that their portfolios are not severely affected.  Investors who exhibit ostrich behavior ignore negative news in the hope that it will go away.

Herd Behavior  Large stock market trends involving periods of frenzied buying (bubbles/greed) or selling (crashes/fear) driven by emotions.

Sources:  Investopedia; Wikipedia

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