A stock market is a business that deals with making transactions between other customers. Typically, the intention is to make money by buying and selling stocks (feasible through investment in securities) of publicly traded companies (stocks). For this reason, it’s often called the “stock market”.
Stock Market Trends
Stock market trends refer to the changes in the market prices of stocks. Stock market trends are influenced by many factors, e.g., natural disasters, politics, international affairs and even GDP growth.
Stock markets have special economic significance because they give various companies easy access to capital through selling shares of ownership to the general public. Although some argue that this could be a disadvantage as well since it can inflate stock prices beyond their fair value, creating what’s called a bubble that will eventually burst, which will lead to a reduction in share prices. This is because investors tend to all buy at once, thinking there is something significant about the current rise in price, only for them later to find out there isn’t any real important reason for an increase in price other than speculation.
Bull And Bear Stock Market Trends
If a stock is on the rise, this is known as a bullish trend, where the investors think that this company has something important to offer in the long run (most likely because of its products or services), thus creating more demand in buying shares of ownership.
On the other hand, if a stock is on the decline, it’s known as a bearish trend, where investors are selling their investments over concerns about future profit prospects. This can happen when there’s news about layoffs within the organization or too much competition in the current industry against this particular company.
