Some Glossary Used in Stock Market

Bull Market An uptrend in stock prices (i.e. increasing) that usually occurs for a time period of months or years. Bull markets are generally characterized by active and high trading volume.

Why an uptrend in stock prices is called Bull Market? This may be because the eyes of bulls are always looking up.

Bear Market

Bear Market is just the opposite of Bull Market. Bear market is a downtrend in stock prices (i.e. decreasing) that usually occurs for a time period of months or years. Bear market usually formed when investors expect economic recession and sold out most of their stock.

Why a downtrend in stock prices is called Besr Market? This may be because the eyes of bears are always looking down.

Trade Volume

The total number of shares traded in the entire stock market during a given period of time. Volume figures are recorded and reported daily by exchanges. Price sometimes alone cannot provide much information about whether an uptrend or downtrend in price. Trade volume must be taken into consideration. A sharp rise in trade volume is a signal of future sharp rises or falls in price, because it reflects either an increased buy volume or sell volume.

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