What is 'What is a bull market?'? | Freetrade Dictionary

We explain what a 'bull market' means

A bull market is generally defined by a 20 per cent rise in the stock market that takes place after a 20 per cent drop in the market.

This is not a precise definition and ‘bull market’ is often used to describe a situation in which investors are upbeat, putting a lot of money into stocks and think that the economy is going to perform well for the foreseeable future.

Though it’s usually used in the context of the stock market, ‘bull market’ can be used to describe almost any area of investment. You might have a ‘real estate bull market’ or a ‘bull market in the fine wine industry.’

The term ‘bullish’ is also derived from ‘bull market.’ To be ‘bullish’ about a particular stock, industry or market just means that you are confident that it’s going to perform well and increase in value.

‍

More terms

Money laundering

A method of moving money obtained illicitly through the financial system so it can be used legally.

Value stocks

Stocks in companies that aren’t necessarily growing fast, but instead are dependable and stable.

Dirty price

The total price payable on the purchase of a gilt. It’s calculated as the clean price plus accrued interest.

NYSE

The world's largest stock exchange. Wall St HQ.

Accounting standards

The rules a company follows when preparing financial statements.

Wall Street

A street in New York that became a figure of speech for the financial markets of the US.

Nominal amount

The face value of a gilt. It represents the amount that will be repaid to the holder at maturity and is also used to calculate the dividend or coupon payment.

Ponzi Scheme

A form of fraud designed to lure new investors, and pays the earlier backers by using the new investors' money.

Securities

Bonds and stocks.

What is a bull market?