Bear and Bull Markets

1 min read

News:Recently, NSE Nifty index has entered into ‘bear market’ territory in the backdrop of the declaration of the coronavirus outbreak, a pandemic by the World Health Organisation(WHO).

Facts:

About Bear Market:

  • A bear market is a market that is receding where most stocks are declining in value due to widespread pessimism and negative investor sentiment.
  • During a bear market, the economy slows down and unemployment rises as companies begin laying off workers.

About Bull Market:

  • The term bull market refers to a stock market that has been rising.It ensures investors that the uptrend will continue over the long term.
  • During Bull market,there will be high economic growth and Low unemployment rates.

About Circuit Breakers:

  • Circuit breakers are triggered to prevent markets from crashing which happens when market participants start to panic induced by fears that their stocks are overvalued and decide to sell their stocks.