ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Bear market: When a stock or bond index, or a commodity’s price falls and keeps falling, it is considered to be in a bear market. Often a decline of 20 percent or more in a stock index is said to meet the threshold of a bear market.

Detailed explanation-2: -When a share’s price decreases in value, that change in value is not redistributed among any parties – the value of the company simply shrinks. The stock market is governed by the forces of supply and demand.

Detailed explanation-3: -If more people want to buy a stock (demand) than sell it (supply), then the price moves up. Conversely, if more people wanted to sell a stock than buy it, there would be greater supply than demand, and the price would fall. Understanding supply and demand is easy.

Detailed explanation-4: -The stock market is a major source of anxiety for many new investors. That’s primarily because of how easy it is to lose money while trading stocks. That being said, while stock market losses are pretty common, the vast majority of losses traders suffer are actually caused by having anxiety in the first place.