ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The commonly accepted definition of a bull market is when stock prices rise by 20% after two declines of 20% each. Traders employ a variety of strategies, such as increased buy and hold and retracement, to profit off bull markets. The opposite of a bull market is a bear market, when prices trend downward.

Detailed explanation-2: -A bull market occurs when securities are on the rise, while a bear market occurs when securities fall for a sustained period of time. It’s important to understand the differences between bull and bear markets and how they impact your investment decisions.

Detailed explanation-3: -While investors may be more willing to buy during a bullish market, a bearish market will likely lead them to sell and move their money into low-risk investments.

Detailed explanation-4: -What is a bull market? A bull market is characterised by a rise in prices over a while. Generally associated with an increase in equity prices, a bull run can extend to other investments such as realty.

Detailed explanation-5: -Growth stocks in bull markets tend to perform well, while value stocks are usually better buys in bear markets. Value stocks are generally less popular in bull markets based on the perception that, when the economy is growing, “undervalued” stocks must be cheap for a reason.