Frankfurt Stock Exchange
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 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'.
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