12/31/2023 0 Comments Bear marketSince the laws of demand and supply influence the market, prices in financial markets Financial Markets The term "financial market" refers to the marketplace where activities such as the creation and trading of various financial assets such as bonds, stocks, commodities, currencies, and derivatives take place. read more such as Bonds, FOREX, and Commodities, etc. Fixed assets, equity (equity investments, equity-linked savings schemes), real estate, commodities (gold, silver, bronze), cash and cash equivalents, derivatives (equity, bonds, debt), and alternative investments such as hedge funds and bitcoins are examples. In general, the terminology applies to stocks, but it also gets referenced to other asset class Asset Class Assets are classified into various classes based on their type, purpose, or the basis of return or markets. read more continuously rise due to favorable macroeconomic scenarios or improved internal circumstances of the firm or sector. This situation is defined as a marketplace whereby the prices of listed securities Listed Securities Listed security refers to a financial instrument such as stocks, bonds, derivatives, etc., registered with and readily tradable on the stock exchanges like NASDAQ and NYSE. Though one with a pessimistic opinion is called someone with a ‘bearish outlook,’ many anticipate such a situation as temporary and indications of the revival stage being around the corner. It is done by borrowing the security from a broker and selling it in the market and thereafter repurchasing the security once the prices have fallen. As a result, stock selection becomes very difficult, and investors focus on making money by selling stocks (short selling) (short Selling) Short Selling is a trading strategy designed to make quick gains by speculating on the falling prices of financial security. If an investor is optimistic, they are said to have a ‘bullish outlook.’Ī bear market is the opposite, the economy is under a recessionary phase over a long period, and stock prices are plummeting rapidly. The selection of stocks is more comfortable in such a scenario as the overall health is stable. The bull will thrust its horns in the air in respective scenarios, whereas a bear will stamp its paws down on its prey.Ī bull market is when the economy is very smooth, the economy’s GDP is rising, and job creation is also on the rise. On the other hand, if the market moves downwards, it is referred to as a ‘Bear Market.’ The terminologies apply to how each of these animals attacks their opponents. ![]() The market will thus go either up or down, which in financial terms is referred to as a ‘Bull Market’ when the general market scenario is upbeat, and the stock market is rising. The stock market of any country in the world is like a heartbeat, which is volatile throughout, depending on various circumstances. A bull marketrefers to an optimistic movement in the stock market which means share prices rise there is a downfall in unemployment, and the economy is good, whereas a bear market refers to a pessimistic movement in the market which indicates that share price is falling, there is high unemployment and recession is approaching which means the bull market is opposite to bear market.
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