Who Are the Bulls and Who the Bears In A Stock Market?

The terms 'bull' and 'bear' represents the rise or fall in the stock market respectively. Here's detailing more about the concepts.

'Bulls' and 'Bears' are the two most commonly used terms in the stock market. Let us understand what these terms mean and why these terms are used in the market.

A bull market, in simple words, is a rapidly rising market. When the stock market keeps declining for several days, it is known as a bear market.

Bull market

A bull market, in simple words, is a rapidly rising market. Such a market is usually associated with buoyant investor confidence, increased investment, and an overall improvement in the economic conditions. When an upward movement continues for a many days in a row, it is considered to be a 'bull run'. And if someone expects the market to go up, he or she is said to have a 'bullish' outlook. Technically,when prices move up by more than 20 percent, it is considered to be a bull market.

Bear market

A bear market is the opposite of the bull market. When the stock market keeps declining for several days, it is known as a bear market. Such a trend can be commonly noticed when the economy is weak, and there is widespread pessimism and fear among investors.Technically, a fall of more than 20 percent in the stock price is considered to be a bear market.

The origin of the terms 'bull' and 'bear' is unknown. However, many believe that it has to do with the way these animals attack their enemies. Bulls usually toss their horns upwards and bears swing their paws downwards. Regardless of how the terms were derived, they are now commonly used by market traders and investors to indicate the direction the markets are moving in.


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