Bears to Bulls - Understanding Key Stock Market Terms
Navigating the world of investing can often feel like learning a new language. Terms like "bull" and "bear" markets are frequently tossed around in financial news, but what do they really mean? Understanding these and other key stock market terms is crucial for anyone looking to invest or simply stay informed about the economy. This article will demystify some of these essential terms, providing a clearer picture of the stock market's workings. Bull Market A "bull market" refers to a period in the stock market characterized by rising prices. The term is often used when major stock indexes, like the S&P 500 or the Dow Jones Industrial Average, increase by 20% or more from their recent lows. But why "bull"? The origin of the term is subject to debate, but one popular theory is that it comes from the way a bull attacks—thrusting its horns upward. This upward movement symbolizes the rise in stock prices. Bear Market Conversely, a "bear