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Have you ever wondered why certain companies’ stocks are linked with particular animals? Perhaps you’ve noticed some businesses adopting multiple animals as their stock symbols. In this piece, we’ll delve into the fascinating realm of stock market animal symbols and explore their significance. Let’s begin our exploration now!
What are stock market animal symbols?
Stock market animals are signs or images that stand in for a company’s shares. These symbols can be more unusual, such as unicorns and dragons, or more well-known, such as lions and eagles. These symbols are frequently used by businesses to define their identity in the marketplace and foster brand recognition.
The history of stock market animal symbols
There is a historical precedent for the use of animal stock symbols in financial markets. The Dutch East India Company’s sign, which dates back to 1602, is really the oldest recorded symbol used for stocks. Symbolising strength and power, the corporation chose a lion as its emblem. Numerous businesses have used animal emblems to symbolise their stocks over the decades, carrying on this tradition.
The meanings behind stock market animal symbols
Each animal symbol used by companies has its unique meaning and significance. Let’s take a closer look at the list of animals of the stock market and what they represent.
- The Bull
The bull is the earliest and most well-known creature in the stock market. Among all the share market creatures, the bull is the most optimistic. It signifies an exceedingly favourable and optimistic stock market climate. When there is a bull market, investors increase their investments as stock prices rise.
In such times, traders believe the market will continue to rise and are upbeat about the futures of the businesses in which they have invested. Bulls effectively drive company share prices higher. A bull market may persist for multiple years at a stretch.
- Rabbits
Traders and investors who take positions for short periods are referred to as “rabbits.” These traders usually trade for a duration of minutes.
These traders are scalpers who aim to take advantage of daytime gains. They are only seeking a chance to earn some fast cash from the market during the day and want to take on something other than overnight or long-term risk.
- Bear
The opposite of a bull market is a big bear of Indian stock market. Lower investment occurs in a bear market because investors have an unfavourable outlook and attitude toward the market. Any decline of about 20% is regarded as a bearish sign for the market. It could endure for several days or a month.
Another scenario is when a nation experiences a recession, which leads to job losses and a decrease in investment. For example, the most famous bear run occurred during the Great Depression. A different illustration of a bearish trend is the US housing market collapse of 2007.
- The Pig
The meaning of the pig in the stock market is akin to what one would expect from pigs in all childhood legends. Pigs are frequently associated with greed. This creature of the share market succumbs to greed and disregards sensible investing concepts and techniques. Returns are never sufficient for a pig.
The pig will reinvest if security generates large returns, even if it means taking out a margin loan or mortgaging assets. Therefore, an investor who makes high-risk decisions that could ultimately yield enormous gains or losses is referred to as a pig.
- Ostrich
A type of investor known as an ostrich is one who, in a down market, sticks their head in the sand and hopes that their portfolio won’t suffer too much.
These investors ignore negative news because they believe it will pass eventually and have no effect on their investments. Ostrich investors think their portfolio will survive and turn a profit if they have yet to learn how it is going.
- The Chicken
The phrase “to chicken out” may ring a bell. It denotes being fearful of something, such as “chickening out” of a situation. Likewise, the “chicken” of the stock market refers to investors who constantly harbour apprehensions about it. At the slightest downturn in the market, these investors fret and hastily take action, selling off stocks prematurely.
They often succumb to emotional impulses and overlook the fact that market volatility is an inherent aspect of stock trading. Chickens in the stock market are also investors or traders who prefer to stick with safe, low-risk investments such as bonds, government securities, bank fixed deposits, and the like.
- The Wolf
Most people believe that the wolf is the most cunning and powerful animal in the stock market. Wolf investors are typically those who are notoriously connected to stock market frauds and are frequently known to employ unethical means to make money.
The investing path is the most notorious stock market wolf, Jordan Belfort, is portrayed in the film “The Wolf of Wall Street.” Nearer to home, we have our very own Harshad Method, dubbed the Dalal Street Wolf.
- Lame Duck
A “lame duck” investor finds themselves in debt and incapable of paying their bills promptly. Bankrupt individuals may also be labelled as lame ducks. During the nascent stages of the London Stock Exchange, the introduction of margin calls was prompted by investors’ inability to settle their debts punctually. In contemporary finance, a margin call serves as a sign of being a lazy duck.
- Sheep’s
Investors who adhere strictly to a single investment strategy without adapting to shifting market conditions are commonly referred to as sheep.
Traditionally, they tend to lag behind in breaking out of a downward trend and are the last to capitalize on an upward one. The sheep prefer to follow a guru and align themselves with the herd or majority. They have yet to develop their own trading or investing strategy.
The Bottom Line
Stock market animal symbols have a rich history and carry significant meaning for companies and investors alike. They can help create brand identity, convey certain qualities or values, and make a company stand out in the market. So, next time you see an animal symbol associated with a company’s stocks, take a moment to reflect on its significance and the story behind it.
FAQs
Companies use animal symbols to create brand recognition and establish their identity in the market.
Companies often choose animal symbols to create a robust brand identity and make it easier for investors to remember them.
The oldest known symbol used for stocks dates back to 1602 with the Dutch East India Company’s lion symbol.
The eagle symbolises freedom, courage, and vision and is often used by companies to convey a strong and confident image.
Some companies may use multiple animal symbols to represent a merger or convey a combination of qualities associated with those animals