ECONOMICS (CBSE/UGC NET)

ECONOMICS

FINANCIAL MARKETS

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
When stocks overall are rising, the market is called?
A
A bull market
B
A bear market
C
market capitalization
D
market diversification
Explanation: 

Detailed explanation-1: -A bull market is a financial market characterized by rising prices and investor optimism. It is most commonly used to refer to the stock market, but can also refer to the bond, real estate, currency, and commodity markets.

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: -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. If the trend was up, it was considered a bull market. If the trend was down, it was a bear market.

Detailed explanation-4: -In finance, a bull is a speculator in a stock market who buys a holding in a stock in the expectation that, in the very short-term, it will rise in value, whereupon they will sell the stock to make a quick profit on the transaction.

Detailed explanation-5: -A “bull” by definition is an investor who buys shares because they believe the market is going to rise; whereas a “bear” will sell shares as they believe the market is going to turn negative.

There is 1 question to complete.