ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -An initial public offering, or IPO, is an example of a primary market . These trades provide an opportunity for investors to buy securities from the bank that did the initial underwriting for a particular stock.

Detailed explanation-2: -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-3: -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.

Detailed explanation-4: -While bull markets are fueled by optimism, bear markets-which occur when stock prices fall 20% or more for a sustained period of time-are just the opposite. Bulls are generally powered by economic strength, whereas bear markets often occur in periods of economic slowdown and higher unemployment.

Detailed explanation-5: -Delivery trading It is the most prevalent trading style in the stock market and one of the most secure ways of investing. Delivery trading is a form of long-term trading where the investors buy stocks intending to hold onto them for some time. Delivery trading doesn’t allow the usage of margin.