Bull Market and Bear Market

What is Bull Market and Bear Market?

Bull/Bear markets indicate different market situations prevalent in a Stock Market. The names have been derived from the fighting/attacking positions or ways of the two animals in comparison to the market behavior. 

Bull Market

As we can see in the above picture as a Bull attacks, it's horns point upwards. This has been used to signify an upward or positive movement in the Stock market or the share prices. this could be of a single stock, a group of stocks or the market as a whole. A Bull is a fierce and forceful animal, and so is the rising prices of shares in a Stock market. So that's why rising prices, a good performing market is called a Bull market.

Bear Market

In the above picture we can see the Bear laying down and defending itself. Bears can be fierce animals but generally they are slow, sluggish and lazy animals. And so is the stock market with decreasing prices/performance. A Bear stands up when  it attacks, so it attacks down towards the earth with it's claws. So this had been used to indicate dropping prices of the market. So that is how a sluggish or a market decreasing in performance got it's name 'Bear Market'.