Before trading in stock market one should completely understand the concept of bull and bear. Bull and Bear is considered to be most important concepts as in short it tells us about the direction of stock market.
What are Bears?
Bear : One who expects the price of the share to fall and takes a position in the market to buy at a later date.
What are Bulls?
Bull : One who expects the price of the share to rise and takes position in the market to sell at a later date.
A bull market is a market where the prices of the stocks are rising. Whereas a bear market is market where prices of the stocks are falling. The two terms ‘Bull and Bear’ commonly used to define types of investors.
Concept of Bull and Bear in Indian Stock Market
A bull in stock market is one who is very optimistic about the stock market; he may be an investor or stock-holder who buy and sell stocks quickly in the market. On the other hand, a bear in the market is one who is very pessimistic about the stock market. For example, bear market funds are those funds that are doing and falling poorly. Sometimes, Investors refer to bull stocks to denote securities that are rising aggressively and maximizing their investor’s wealth.
Market Conditions in Both Cases
There are specific types of certain markets conditions that exist in both concept Bull and Bear markets. For an instance, a Bull market is frequent accompanied by an unexpected increase in securities demand and a lesser supplies of the same securities. The logic behind in this, as more and more investors are willing to buy the stocks while less wish to sell out. However, in a bearish market, investors less confident and hence invest less.