Stocks Basics: Bulls, Bears & Market Sentiment


Bull and Bear market is used to tell that how stock market working in general.

Bull Market

A bull market is the state of a financial market, of a group of securities in which prices are rising or are expected to rise. The word “bull market” is used to refer to the stock market. It can be applied to any product that is exported or imported. It usually includes bonds, property, cash and supplies. Because prices of securities rise and fall continuously during trading, the word “bull market” is kept for extended periods in which a large portion of security prices are rising. Bull markets tend to end for months or even years.

Bear Market:

A bear market is a state in which securities prices fall 20 percent or more from recent highs within widespread doubt and negative investor sentiment. Bear markets are related with declines in an overall market or index like the S&P 500, but individual securities or supplies can be considered to be in a bear market if they experience a decline of 20 percent or more over a constant period of time, usually two months or more.

Market Sentiment:

Market sentiment is the attitude of investors toward a certain security or financial market. Market sentiment is the feeling of a market. It can be its crowd psychology. It is, as revealed through the activity and price movement of the securities traded in that market. Rising prices would tell bullish market sentiment. Falling prices would tell bearish market sentiment.

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