Bull

He is a speculator on the stock exchange who anticipates a rise in prices and enters into a contract to buy the shares at current prices with the hope of selling them at the future date when the prices rise as per his expectation. If the prices rise, he sells and makes a speculative profit. In India, the bull speculator is known as tejiwala. Just as a bull tends to keep his head upward, the bull speculator tends to be on the upper side of the market. He ‘busy long’ and creates a pressure, for prices to rise. This is known as Bull Campaign or ‘rigging the market.’ A market dominated by bulls is known as bullish market.
The usual technique followed by a bull is to buy security without taking actual delivery to sell it in the future when there is a rise in prices. The bull raises the prices in the stock market of those securities in which he deals. He is said to be on the long side of the market. If the price falls, the bull pays the difference at a loss. If the price continues to fall he may either close his deal or carry forward the deal only if he expects a rise in price in the future which will cover the contango charges which will bring him some profit.
The bulls thus influence the market to a very great extent by exercising great pressure in the stock market to raise the price of securities through bulk purchasing of securities.

Example of bull transaction. If a person asks his broker to buy 1000 shares at Rs. 10 per share, for which no immediate payment will be made, and if the price of those shares increases to Rs16 per share, he will instruct his broker to sell the shares on his behalf. The transaction may not be real. The profit made in this transaction is calculated as follows:

Sales price of 1000 shares @ Rs. 16 per share = 16,000
Purchase price of 1000 shares @ Rs. 10 per shares = 10,000
Profit = 6,000

This profit of Rs. 6000 only will be paid on the date of settlement and there will be no delivery of shares.

When a bull fails in his forecast, he is called “disappointed or disrupted bull”. If he has to wait for a long time for the market to turn to his favour, he is called “tired bull’.