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JAMB Commerce 2002 Question 22

Question 22

Stock Exchange

The bulls and bears in the Stock Exchange market help to minimize

  1. A.the number of shares and bonds sold
  2. B.price increases of securities
  3. C.fluctuations in the prices of securities
  4. D.the elasticity of the prices of securities.
Show the answer and explanation

Answer: C (fluctuations in the prices of securities)

Explanation

Bulls buy when prices are low and bears sell when they are high, which helps even out price fluctuations.