What is the definition of a bull vs Bear Market?

Bulls are optimistic the stock market will continue to rise future and are likely to buy stocks. A bear market is triggered when the market falls 20% from a previous high over an extended period of time. Bears are pessimistic about the future and expect the stock market to fall.

What happens to prices in the bull and bear market?

In a bull market, investors willingly participate in the hope of obtaining a profit. During a bear market, market sentiment is negative; investors begin to move their money out of equities and into fixed-income securities as they wait for a positive move in the stock market. In sum, the decline in stock market prices shakes investor confidence.

What is bull market vs Bear Market?

So, it's important to understand how each of these market conditions may impact your investments. A bull market is a market that is on the rise and where the economy is sound; while a bear market exists in an economy that is receding, where most stocks are declining in value.

What does bear and Bull mean in the stock markets?

The ‘bull’ and ‘bear’ words that are commonly used in the stock market, come from the way these animals attack their opponents. A bull thrusts its horns up in the air, while a bear swipes its paws downward when attacking their opponent. So these actions are metaphors for the movement of a stock market.