Saturday, December 25, 2010

Bear Market

A bear market is a period during which security prices are broadly falling. The term is most well known in association with the stock market. Investors tend to panic when stocks start to fall across the board and by a significant amount, however some investors will profit from short-selling, using portfolio protection, or buying at relatively lower prices following a large price decline. The general thinking is that markets undergo cycles, with a bear market being a falling market, and a bull market being a rising market.

Synonyms: Down market, Market crash, Falling market, Negative returns
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