What is The Bear and Bull Markets?

Posted 1 year, 4 months ago.

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Definition:
A market trend, an over-all direction of the stock market, commonly referred to a as bull or bear market.

Explanation:
What is a Bear Market?
A bear market is a prolonged period in the market in which stock prices are declining faster than their past averages. It can last months or even years. This market tends to be made up of investors anticipating further losses and that are motivated to sell with negative opinions feeding on itself in a vicious circle. It is defined by a price decline of least 15% in a key stock market index. The most famous bear market in history was the Great Depression during the early 1930s.


What is a Bull Market?
A bull market is a prolonged period in the market in which stock prices are increasing faster than their past averages. It can last months or even years. This market tends to be associated with increasing investor confidence, encouraging investors to buy in hopes of additional capital gains. It is defined by a price increase of least 15% in a key stock market index. The bull market of the 1990s is perhaps one of the most famous and longest bull markets in history.
“There will always be bull markets followed by bear markets followed by bull markets”
– John Templeton

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