ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A bear market is defined by a prolonged drop in investment prices-generally, a bear market happens when a broad market index falls by 20% or more from its most recent high. The reverse of a bear market is a bull market, characterized by gains of 20% or more.

Detailed explanation-2: -What Is a Stock Market Crash? A stock market crash is a rapid and often unanticipated drop in stock prices. A stock market crash can be a side effect of a major catastrophic event, economic crisis, or the collapse of a long-term speculative bubble.

Detailed explanation-3: -Bear Market Definition Economists define a bear market as a decline of 20% or more of a major stock market index, such as the DJIA or S&P 500, for a sustained period. A bear market is the opposite of a bull market, a period marked by market gains of 20% or more.

Detailed explanation-4: -Believe it or not, the term “bear market” originates with pioneer bearskin traders. The country’s early traders would sell skins they’d not yet received – or paid for. Because the traders hoped to buy the fur from trappers at a lower price than what they’d sold it for, “bears” became synonymous with a declining market.

Detailed explanation-5: -Bear markets are defined as sustained periods of downward trending stock prices, often triggered by a 20% decline from near-term highs. Bear markets are often accompanied by an economic recession and high unemployment, but bear markets can also be great buying opportunities while prices are depressed.