In stock exchange, who are bulls and bears?
The expressions 'bulls' and 'bears' are part of stock exchange terminology. These have been in use for over two centuries. Bull is used to denote an optimistic investor, and a bear pessimistic one. Bears sell stocks which they do not yet own, betting that when the time comes to actually buy and deliver the stock they have sold, the prices would have fallen, and they would be able to buy the stock at a discount, thus making a profit. Bulls, on the other hand, bet in the opposite way. Assuming that the market is rising, they buy the stock in the expectation that they would be able to later sell it at a higher price. A bull market is one in which stock prices are rising. A bear market is one marked by falling prices.
How did this terminology originate?
'Bear comes from the term 'bearskin jobber' which was used in the 18th century to denote a person selling short (that is, stock which he did not own). Possibly this usage was derived from an old English proverb which goes 'Don't sell the bearskin before the bear is caught'. (This is exactly what the stock exchange bear does.) As for the 'bull', it probably got the name due to the alliteration with 'bear', and also because both bull and bear 'baiting' were popular sports in old England.
