10 Key Economic Concept You Must Know

1. Bear market

The principle of a bear market is simple enough. Essentially, it represents a negative or pessimistic outlook on a stock market’s performance, often with such markets falling into a downfall spiral, where prices continue to drop. 

As a result of a bear market, selling of stocks tends to increase. Additionally, investors expect, and may well receive, increased losses from their investments.

2. Bull market

A bull market represents a much more positive outlook on a stock market’s performance compared to a bear market. In a bull market, stock prices either have or are expected to increase.

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