Stock Market Players

 Stock Market : Players

In the world of stock market, the main players or participants are: brokers and investors. A Broker is a middleman who brings a buyer and a seller together. Broker helps to strike a deal and charges brokerage or commission for services. In stock markets there are two types of brokers ( individual and corporate brokers) 

Types of Brokers

1. Bear : A bear is a broker and speculator. He expects the price of shares to fall. So what he tries to do is sell at today’s price, which he fears that will fall in the upcoming future. By selling shares at today’s higher price, he can avoid making a loss in the future. If there is large- scale of selling by large group of bearers. This is type of market sentiment known as bearish.

2. Bull :  A bull is also a broker and a speculator. He is optimistic and expects the price of shares to rise. He tries to buy shares at today’s price and hopes that it will rise in upcoming future. By buying shares at today’s lower price, he can make huge profits in upcoming future, after selling shares at larger price. If there is large scale of buying large amount of bulls. This type of market sentiment known ad bullish.

Types of Investors

1. Stag : A stag is an investor who buys shares through famous company issues, that is when the company comes out with their share. Stag buys shares at face value or par value and sell shares before trading starts on stock exchange or on the first day of listing the company on stock exchange. There is little risk involved in this type of trading.

2. Chicken: A chicken is an investor who doesn’t have any willpower or courage to take risks. He avoid taking risk and doesn’t wish to lose the money. He tries to avoid buying or selling anything for short term. He invests his money as government bonds and as fixed deposit. He might also invest in blue chip stocks it means companies that are more financially secure and have a long, consistent growth throughout. For example: SEBI(Security Exchange Board of India).

3. Pig: A pig is an investor who dares to take risks and make large profits. He buys shares without doing any background check on the companies performance or rising the price of shares.