Indiana Business Licensure Practice Test 2025 – Comprehensive All-in-One Guide to Excel in Your Licensure Exam!

Question: 1 / 475

Which term refers to the securities traded in a bear market?

Rising securities

Stable securities

Declining securities

In a bear market, the overall sentiment in the market is pessimistic, leading to a decline in stock prices. The term "declining securities" aptly describes the nature of transactions during this period. Investors typically experience a drop in the value of their investments, which signifies that the securities are losing value rather than gaining it.

This scenario contrasts with the other terms provided. "Rising securities" would imply that prices are increasing, which is not characteristic of a bear market. "Stable securities" would suggest that prices remain unchanged, yet bear markets are defined by declining prices. "Innovative securities" does not relate to market conditions and typically refers to new or cutting-edge investment products rather than their performance in a bear market.

Thus, "declining securities" is the correct term to describe the negative performance trend observed in a bear market.

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Innovative securities

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