Definition of Bear Market

Bear market is a market condition that is characterized by continuing falling prices and a series of lower lows in overall prices.

Applying "Bear Market" to Securities Exams:

A bear market can began for any number of reasons but the main cause is generally a decline in economic conditions or the anticipation of a Delcine in economic conditions. Rallies tend to be sharp and short lived and met with renewed selling which drives the market to new lows. Bear markets tend to bottom out prior to the bottom of the economy as the market is a leading indicator.

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