What do "riding the sedan chair" and "carrying the sedan chair" mean?

The predecessor of the stock market originated in 1602, when the Dutch traded shares of the Dutch East India Company on the Amstel Bridge, while the earliest formal stock market appeared in the United States. It is a place where both speculators and investors are active, and it is also a thermometer of the economic and financial activity of a country or region. There are also many terms in the stock market. Below, let us take a look at the meanings of "riding the sedan chair" and "carrying the sedan chair"!

What does "riding the sedan chair" mean?

"Riding the sedan chair" is a speculative trading behavior in the stock market that drives up and manipulates stock prices. Speculators expect that bullish or bearish information will be announced, and that stock prices will rise or fall sharply as a result, so speculators immediately buy or sell stocks. When the information is announced, people rush to buy or sell in large numbers, causing stock prices to rise or fall sharply. At this point, the speculators then sell or buy stocks to obtain substantial profits. Buying first and then selling is called "riding the long sedan chair", while selling first and then buying is called "riding the short sedan chair".

What does "carrying the sedan chair" mean?

"Carrying the sedan chair" refers to the behavior of speculators who expect stock prices to rise or fall sharply and immediately rush to buy or sell stocks, but the profits are often limited, and they even often end up stuck in a position. Usually, the behavior of rushing to buy stocks on bullish information is called carrying the long sedan chair, and the behavior of rushing to sell stocks on bearish information is called carrying the short sedan chair.

What common terms are there in the stock market?

1. Rights issue: When a company issues new shares, it allocates them to shareholders for subscription at a special price (lower than the market price) according to the proportion of shares held by all shareholders.

2. Retail investor: A small investor who buys and sells very few shares.

3. Operator: Someone who speculates and drives up prices in the stock market, uses improper methods to push stock prices up and then sells, then tries to push the market down and buy back at a low price, or buys at a low price, drives the price up through speculation, and then sells at a high price.

4. Accumulation: When an operator secretly buys stocks at a low price, it is called accumulation.

5. Distribution: When an operator quietly sells stocks at a high price, it is called distribution.

6. Slam: The act of using improper means to push stock prices down is called slamming.

7. Bottom fishing: Bottom fishing refers to the operational strategy of measuring with some valuation indicator that stock prices have fallen to their lowest point, especially buying when prices have fallen sharply in a short period, in expectation that stock prices will rebound quickly.

8. Bear: Bear refers to a situation where, although the current stock price is relatively high, investors are not optimistic about the stock market outlook and expect stock prices to fall, so they sell stocks while the price is relatively high, and then buy again when the stock price drops to a certain level, in order to obtain the difference in income.