Bulls and Bears
As we mentioned before, the stock market is a place where people can buy and sell shares of companies. Depending on how many people buy and how many people sell these shares in the different companies, the stock market as a whole can go up or down. In fact, the stock market moves through the constant “tug of war” between the buyers and the sellers of shares.
What do they mean by a bull and a bear market? Who are the bulls and who are the bears?
Well, we’re not talking about a street market with stalls selling bears and bulls or a zoo for that matter. The terms bull and bear can be used in two ways. They can be used to describe an investor or they can describe a period of time in the stock market.
The story behind the bull and the bear?
The idea behind the term bear originated in the old days, when traders used to sell bearskins before the bear was actually caught. In the stock market, it applies to people who expect prices to fall and the periods of time when share prices actually fall.