Bull and bear market
Also called: Bull market, Bear market · Topic: Financial Markets, Instruments, Insurance and Pensions · NCERT: Beyond NCERT
Meaning
A bull market is a long period of rising share prices, when investors feel optimistic. A bear market is a long period of falling share prices, when investors feel gloomy. A fall of 20% or more from a recent peak is commonly called a bear market. The names are said to come from how each animal attacks: a bull thrusts its horns up, and a bear swipes its paws down. These terms describe the general mood of the market, not a single day's movement.
Example
Indian markets hit record highs in 2024, a sign of bullish (rising) conditions. The sharp fall of March 2020, during COVID, was a bearish phase (falling prices) in which market-wide circuit breakers, or trading halts, were triggered.
Don't confuse with
- Stock market crash: a sudden, steep fall over a very short time, often because of panic selling. A bear market is a long decline, which may or may not begin with a crash.
Related concepts
- Secondary market
- Depository
- Demat account
- Clearing corporation
- T+1 settlement
- Algorithmic trading
- Circuit breaker
- Sensex
- Nifty 50
- Market capitalisation