Introduction to Bulls and Bears

01:12 Mins Read

In this video, you will be introduced to what the terms 'bulls' and 'bears' actually mean in the financial markets.

Transcript

You may have, no doubt, heard the terms bears and bulls being thrown around in market conversations, isn't it? What do they mean? The word 'Bulls' is a reference to a bull market, which is essentially a market that is on the rise. The stock prices in a bull market generally see a sustained increase. The word 'Bears,' on the other hand, is a reference to a bear market, which is essentially a declining market. A bear market generally sees a sustained fall in stock prices. So, where do the names for these markets come from, anyway? Many people believe that these terms refer to the style in which each animal attacks its opponents. A bull thrusts its horns up into the air, signalling an upward movement. A bear swipes down, signalling a downward movement. Historically, the market has seen many bull and bear trends. Head to the next chapter in this module for some lessons from previous bear markets.

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