Individuals who buy new shares in anticipation of reselling at higher prices in the stock exchange market are called

Analyze the question: It asks for the name given to investors who buy new share issues hoping to resell them quickly at a higher price (a quick profit).

Explain the concept: On the stock exchange, different players have different names:

• Bulls: investors who buy shares expecting prices to rise, so they can sell later at a profit. They deal in existing shares generally.
• Bears: investors who sell shares expecting prices to fall, hoping to buy back cheaper later.
• Brokers: agents who buy and sell shares on behalf of clients for a commission.
• Jobbers: market makers who deal in shares on their own account, buying and selling to keep the market going.
• Stags: investors who apply for new issues of shares, expecting demand to push the price above the issue price, so they can resell quickly at a profit.

Step-by-step solution:

1. The question stresses new shares, which points to a new issue or public offer.
2. The aim is resale at a higher price, a quick profit and not long-term holding.
3. Bulls also expect rising prices, but the term "stag" specifically describes buyers of new issues for quick resale.
4. Brokers and jobbers are intermediaries, not speculators in new issues, and bears expect prices to fall.

Answer: The correct option is E. stags.

Tip: Link "stag" with "start", since stags buy at the start, when shares are first issued. Also remember: bull = price goes up, bear = price goes down (a bear swipes downward).