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.