Thursday, February 25, 2010

A Few Financial Terms - Bears & Bulls

Ever wonder what a person means when they say it is a bearish market or a bullish market? Here is the answer! Now go and impress your friends.

Bearish- Describing a market for one or more securities in which there are few buyers and many sellers. A bearish market occurs due to declining prices, and it is sometimes associated with high trading volume. Investors may also describe having a bearish feeling about a market, meaning they believe (not necessarily with any analysis) that prices have been declining or soon will begin to do so.

Bullish - Of or relating to the belief that a particular stock or the market as a whole is headed for a period of generally rising prices.

Here is an easy way to remember: A bear retires (declines) into a cave. A bull charges forward (rises).

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