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Simple English definitions for legal terms
bear market
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A quick definition of bear market:
A bear market is when the prices of things like stocks and commodities keep going down for a long time. This means that people who own these things might lose money. It's the opposite of a bull market, where prices keep going up.A more thorough explanation:
Definition: A bear market is a securities market where prices of stocks, bonds, and other investments fall over a prolonged period. It is the opposite of a bull market, where prices rise over a prolonged period.
Example: During the 2008 financial crisis, the stock market experienced a bear market. The prices of stocks fell sharply, and investors lost a lot of money.
Explanation: The example illustrates a bear market because the prices of stocks fell over a prolonged period, causing investors to lose money. In a bear market, investors tend to sell their investments, causing prices to fall further. This creates a cycle of declining prices, which can last for months or even years.