Friday, February 15, 2008

Bull market and Bear Market

Difference between Bull and Bear Market.

A bull market is typified by generally rising stock prices, high economic growth, and strong investor confidence in the economy whereas bear market is typified by falling stock prices, bad economic news, and low investor confidence in the economy.
A bull market is slang for when stock prices have increased for an extended period of time. If an investor is "bullish" they are referred to as a "bull" because they believe a particular company, industry, sector, or market in general is going to go up. Simply put, bull markets are movements in the stock market in which prices are rising and the consensus is that prices will continue moving upward. During this time, economic production is high, jobs are plentiful and inflation is low.
A bear market is slang for when stock prices have decreased for an extended period of time. If an investor is "bearish" they are referred to as a bear because they believe a particular company, industry, sector, or market in general is going to go down. Bear markets are are movements in the stock market in which prices are falling, and the view is that they will continue falling. The economy will slow down, coupled with a rise in unemployment and inflation.

1 comment:

aditi said...

When price of stocks are rising then market is said to be bullish. It is advised to sell your stocks under such condition.And vice versa when market is bearish.
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