Lesson Content
The stock market moves through different phases based on investor confidence and economic conditions.
Bull Market
A bull market occurs when stock prices rise continuously over a long period. Investors feel confident, and buying activity increases.
Characteristics of a bull market:
- Rising stock prices
- Strong economy
- High investor confidence
- Increased company profits
Bear Market
A bear market occurs when stock prices decline significantly. Investors become cautious, and selling pressure increases.
Characteristics of a bear market:
- Falling stock prices
- Economic slowdown
- Fear among investors
- Reduced investments
Understanding market trends helps investors make smarter investment decisions.