Share Market Knowledge: In the stock market, pictures of bull and bear are often used to show boom and recession. Do you know why this is done and what is the logic behind it? The concept of bull and bear in the stock market has been used in the American market and from there this idea came to other stock markets of the world. Let us tell you why bull and bear are considered symbols of boom and recession in the stock market.
How did the bulls and bears enter the market?
In the stock market, the images of "bull" and "bear" are used to describe the market conditions based on the attack of the animals. Actually, whenever the bull attacks, it uses its horns and throws it upwards, in such a situation, this situation is considered a symbol of rising prices in the market.
At the same time, when a bear attacks someone, it uses its claws and attacks from top to bottom. In such a situation, the downward attack is considered a symbol of recession in the market.
What is bull and bear market?
According to information available on the website of the stock market regulator SEBI, the terms “bull market” and “bear market” are used to denote different trends in the equity market.
Bull Market: This is a phase when stock prices are rising and investors are optimistic about the market. In such a situation, it is assumed that the economy is performing well. In a bull market, stock prices are high and investors make good money.
Bear Market: This is a recessionary phase in the market when stock prices are falling and investors have a negative outlook. In such a situation, the economy is expected to weaken. Bear markets can also occur due to geopolitical tensions or natural disasters.
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