Bulls & Bears
March 5th, 2007 by daryI was recently asked, “Where do the names Bull and Bear market come from?”.
Starting with the basics, a ‘Bull Market’ is a term used to describe a stock market that is increasing in value. It is characterised by optimism, investor confidence and expectations of continued growth. A ‘Bear Market’ is a term used to describe a stock market that is decreasing in value. It is characterised by periods of pessimism, lack of investor confidence and general feelings of doom, gloom and despair about the future of the stock market.
The term Bull Market is derived from how a Bull attacks an opponent. When a Bull attacks it does so by thrusting its head & horns upward and in doing so throws its opponent into the air. By doing so the Bull’s opponent rises into the air, hence the term ‘Bull Market’ to describe a stock market that is increasing, or rising, in value. When a stock increases quickly in value, its price movement is described as ‘bullish’.
Frankfurt Stock Exchange
The term Bear Market is derived from how a Bear attacks an opponent. When a Bear attacks it does so by rising up on its hind legs and attacks its opponent by pulling it to the ground using its claws and body weight. By doing so the Bear’s opponent is either thrown to the ground or crushed in to the ground, hence the term ‘Bear Market’ to describe a stock market that is decreasing, or falling, in value. When a stock decreases quickly in value, its price movement is described as ‘bearish’.