‘Bull’ and ‘Bear’ are terms that are commonly used with respect to the share market. The origin of these names lies, to a large extent, in the personality of the animal from where the name is taken. The bear is a slower animal while the bull is upbeat and spirited. Hence the ‘Bear’ market refers to a slowdown or decline in prices while the ‘Bull’ market refers to a profitable market with rising prices.
A market is classified as a “Bull” or “bear” depending largely on the rise and fall in demand and supply of securities. In a “Bull” market the economy is flourishing and there is a lucrative job market for employment seekers. The opposite scenario occurs in case of a “Bear” market. Here the inflation is higher and slow economic growth. Depending on the kind of market investors decide whether to buy or sell shares in order to optimize profit.
To classify a market in either category, it needs to be moving in that direction for a significant period of time. Usually the stock market trend is calculated on a period of 5 to 20 years by observing the number of rises and falls in the market to determine whether it was a ‘Bull’ or ‘Bear’ market. Short-lived moments or sudden spurts of changes are not calculated as a ‘Trend’ unless it is long lasting.
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This is what we talk in stock market all the time. Market is never one sided as it is ruled by the demand supply forces. Thus sometimes you have bulls and sometimes bears.
‘Bull’ and ‘Bear’ are associated terminologies with share market. In fact, the share market is all entirely dependent on the bull and bear. They are the measurement of fluctuation in demand and supply of the share in share market.
This is a concept to indicate the competition between the rising price and the declining prices in the share market.
Bulls and bears have been important parts of market especially the stock market. Each follows the other. There are times when markets are bad and there are times when they are good.