ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -A bull market is defined as a prolonged period of rising stock prices. It is the opposite of a bear market, which is a prolonged period of falling stock prices. The term “bull” is used to describe the market because it is thought to resemble the charging movement of a bull.

Detailed explanation-2: -A bull market is a period of time in financial markets when the price of an asset or security rises continuously. The commonly accepted definition of a bull market is when stock prices rise by 20% after two declines of 20% each.

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: -These markets undergo a cycle of rising and falling stock prices. So, to describe the booms and busts of a financial market, terms, such as bull and bear market are used. It is a bear market when the stock prices fall and a bull market when the prices go up.