First of all, let's remember that bears are sluggish and bulls spirited and burly. The terms are used to describe general actions and attitudes, or sentiment, either of an individual bear and bull or the market. A bear market refers to a decline in prices, usually for a few months, in a single security or asset, group of securities or the securities market as a whole. A bull market is when prices are rising.

The actual origins of these expressions are unclear. Here are two of the most frequent explanations given:. For further reading, see Surviving Bear Country and Digging Deeper Into Bull And Bear Markets , as well as The Bulls, The Bears and The Farm.

What is a Bull and a Bear Market? – Money Instructor

Dictionary Term Of The Day. A measure of what it costs an investment company to operate a mutual fund.

Bull Market

Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin? This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education. Where Did the Bull and Bear Market Get Their Names? By Investopedia Staff Updated May 26, — 2: Here are two of the most frequent explanations given: The terms "bear" and "bull" are thought to derive from the way in which each animal attacks its opponents.

That is, a bull will thrust its horns up into the air, while a bear will swipe down. These actions were then related metaphorically to the movement of a market: Historically, the middlemen in the sale of bearskins would sell skins they had yet to receive. As such, they would speculate on the future purchase price of these skins from the trappers, hoping they would drop. The trappers would profit from a spread—the difference between the cost price and the selling price.

These middlemen became known as "bears," short for bearskin jobbers , and the term stuck for describing a downturn in the market. Conversely, because bears and bulls were widely considered to be opposites due to the once-popular blood sport of bull-and-bear fights, the term bull stands as the opposite of bears.

A bull market is represented by a rising price trend, and a bear market is indicated by a falling price trend. Learn why investing in a tumultuous market can be challenging even for the most experienced investors. Learn how traders use put options in their trading strategies to remain profitable, even in a bear market. Learn about the Elder-Ray index, a novel technical oscillator created by Dr.

Alexander Elder to assess the buying and selling Learn strategies young investors can implement during a bear market that present the greatest opportunity for long-term investment Discover why it's important to know the characteristics of the two types of market conditions.

Bull and bear markets shouldn't really matter to long-term investors. Even if the market is in a decline your portfolio doesn't have to be. Elder-ray helps determine the strength of competing groups of bulls and bears so you know when to buy and when to short.

How can a trader use the Elder-Ray oscillator as the second screen of this system? Looking back at the history of bull markets can give some context on where we currently stand.

Finance professionals speak a different language, but the terms they use are more familiar than you think. Learn about the state of U. A period in which prices of stocks increase during a bear market.

Market trend - Wikipedia

An expense ratio is determined through an annual A hybrid of debt and equity financing that is typically used to finance the expansion of existing companies. A period of time in which all factors of production and costs are variable. In the long run, firms are able to adjust all A legal agreement created by the courts between two parties who did not have a previous obligation to each other.

A macroeconomic theory to explain the cause-and-effect relationship between rising wages and rising prices, or inflation. A statistical technique used to measure and quantify the level of financial risk within a firm or investment portfolio over Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator.

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