What is The Difference Between A Bull Market And A Bear Market ?
People, who are new to the stock market, do not know what is the difference between a bear market and bull market. Bull as the name indicates means power and energy, and bear means sluggishness. In stock market both of these terms are used. Bull means the market which shows confidence and prices are going up and market indices such as NASDAQ also go up. |
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Bull has horns on his head which are always risen up in the air while the bear swipes down. Similarly, in a bull market the prices are high and in bear market prices decline. In a bull market there is rise in value of market by at least twenty percent. As there is rise in prices there is more and more entry of companies investing money in the market, but on the other hand, a bear market shows lack of confidence and there is risk to the investors in investing their money.
Bull market is associated with the increase in the confidence level of the investors which gives them more motivation to further buy shares. The biggest bull market which has ever prevailed was in US in 1990s and the global financial market also grew up at a faster rate which is totally opposite to the bear market in which the investor has to take risk. Prices, however, go down and the indices also fall and value of money becomes stagnant. A bear market is marked by a decline of twenty percent or more than that in a key stock market index.
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Whatis The Difference Between A Bull Market And A Bear Market
