Bulls & Bears In The Stock Market


The use of ‘Bull’ and ‘Bear’ is to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while bears swipes its paws down. These actions are metaphors for the movement of a market.In other words, if the trend of the market towards up it is known as ‘bull market’ and if the trend is down , it is known as ‘bear market’.

Unless you are involved in the stock market, you may not understand what the term ‘bull’ and ‘bear’ means.

Green Light ( Bull Trend )

A bull market is a market that is associated with the investor confidence. As a result of this increase in confidence investors are more likely to buy in anticipation of making a capital gain .This is when the market is showing confidence. Indicators of confidence are prices go up,market indices go up too. Number of shares traded is also high.

Red Light ( Bearish Trend )

A bear market is opposite to a bull. If the markets fall by more than 20% then we have entered a bear market. This is the market when market showing a lack of confidence, prices go down too.

A bear stock market has these same investors looking to sell their stocks so they can minimize their losses. The basic idea behind buying and selling stocks is to buy low and sell high. This will give you profit.

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