SIE (Securities Industry Essentials) Practice Exam 2026 - Free SIE Practice Questions and Study Guide

A bullish investor is someone who believes that the price of a particular security, market sector, or the market as a whole will rise. This optimism leads them to take a long position in stocks, meaning they buy shares with the expectation that their value will increase over time. By going long, a bullish investor can benefit from price appreciation, thus maximizing potential returns when the market or specific stocks perform well.

In contrast, being short a stock implies a bearish outlook, as the investor is betting that the stock's price will decline. Expecting the market to fall also reflects a bearish sentiment, which contradicts the characteristics of a bullish investor. Lastly, preferring bonds over stocks often indicates a more cautious or risk-averse approach, which is not aligned with a bullish strategy that seeks growth through stock appreciation. Therefore, the description of a bullish investor is best captured by the long position in stocks.