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‘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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