Tap or click on cards to flip them and reveal the answers. You can use arrow keys as well.
Loading folders...
1/15 cards
What defines a bull market?
Click to flip
A bull market is characterized by rising prices in stocks, usually by 20% or more, indicating strong investor confidence and optimism.
Click to flip
What characterizes a bear market?
Click to flip
A bear market occurs when stock prices fall 20% or more from recent highs, often leading to widespread pessimism and a negative outlook on the economy.
Click to flip
What is the origin of the terms 'bear' and 'bull' in the market context?
Click to flip
The terms originate from the way each animal attacks; a bull thrusts its horns upwards, whereas a bear swipes its paws downward, symbolizing market trends.
Click to flip
How do economic indicators influence bull markets?
Click to flip
Economic indicators such as high GDP growth, low unemployment, and corporate earnings boost investor confidence, leading to a bull market.
Click to flip
How can interest rates impact bear markets?
Click to flip
Rising interest rates can lead to a bear market as they increase borrowing costs, reduce corporate profits, and decrease spending.
Click to flip
What role does investor psychology play in a bull market?
Click to flip
During a bull market, investor optimism and fear of missing out (FOMO) drive up demand for stocks, further increasing prices.
Click to flip
What is a common investment strategy during bear markets?
Click to flip
Investors might adopt a defensive strategy, focusing on safer or counter-cyclical investments such as bonds or consumer staples.
Click to flip
What are 'corrections' in the context of bull markets?
Click to flip
Corrections are short-term declines of 10% or more in stock prices during an ongoing bull market, allowing prices to stabilize.
Click to flip
What is the typical duration of bull markets compared to bear markets?
Click to flip
Bull markets typically last longer than bear markets, often enduring for several years, while bear markets are generally shorter.
Click to flip
How do bull markets influence IPO activity?
Click to flip
Bull markets often lead to increased Initial Public Offerings (IPOs) as companies take advantage of favorable conditions and high valuations.
Click to flip
What impact can government policies have on bull and bear markets?
Click to flip
Policies such as tax cuts can stimulate a bull market, while fiscal tightening or controversial regulations might trigger a bear market.
Click to flip
How are asset bubbles related to bull markets?
Click to flip
Asset bubbles can form when rapid price increases during a bull market lead to overvaluation, risking sudden corrections.
Click to flip
What is a 'market bottom' in bear markets?
Click to flip
A market bottom is the lowest point in a bear market, indicating the start of a potential recovery and upward trend.
Click to flip
What role do earnings reports play in identifying market trends?
Click to flip
Positive earnings reports can fuel bull markets by boosting investor confidence, while negative reports can trigger bear market fears.
Click to flip
How might global events trigger bear markets?
Click to flip
Global events such as wars, pandemics, or trade disputes can create economic uncertainty, leading to a bear market.
Click to flip
Need More Study Materials?
Go back to the chat to generate additional resources.