ManagementMania AppMania EduMania JobMania BusinessPages


What is Bear Market
The term Bear Market denotes a financial market, on which the prices for traded securities are falling or their decline is expected.

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.

Related terms and methods:

Related industry / sector:

Related management field:

previous next
Did this article help you?
Rating:
Last update: 20.08.2015

Comments



You cannot contribute to the discussion because it is locked


Related consulting companiesmore...