The term Bear Market denotes a financial market, on which the prices for traded securities are falling or their decline is expected. Usually, this term is applied to the stock market.
Bear market in practice: A bear market is usually associated with a negative mood or sentiment and a depressed situation on the financial market, the prices of shares or other securities are on the decline, investors are trying to get rid of them and losses are expected. A financial market is called a bear market when a decline in share prices has been occurring for several months and has a magnitude of at least 20% and is occurring on several share indexes at once. It should thus not be confused with any kind of short term or local decline. A bear market in fact denotes a market trend. Investors who predict a decline in share prices are called bearish. During a bear market, organisations run the risk of losing their invested capital.
The opposite of the bear market is the so-called bull market.
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