What is a 'bull market'? Definition & meaning

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.

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More terms

Xetra

A trading venue operated by the Frankfurt Stock Exchange.

Free Trade

The other free trade. International trade in which countries allow goods to flow across their borders without imposing import or export taxes.

Accounting standards

The rules a company follows when preparing financial statements.

Income statement

A summary of a company's income and expenses over a set period of time.

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.

Leverage

A method of trading using borrowed money that usually involves a very high level of risk.

Clean price

The quoted price of a gilt, which excludes accrued interest

Professional Client

An investor that is able to meet several regulatory criteria.

Fundamentals

The data or information that is likely to impact a company's stock price.

What is a bull market?