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Simple English definitions for legal terms
trend
Read a random definition: natural watercourse
A quick definition of trend:
A trend is a pattern in the stock market that shows whether the prices of stocks are going up or down. There are different types of trends, such as major trends that show the general increase or decrease of stock prices over a long period, and market trends that show the direction of stock-market prices over several months.
A more thorough explanation:
Definition: A trend is a pattern in the stock market or in a particular stock's price. It refers to the general direction of stock prices over a period of time.
Examples:
- Major trend: This refers to a long-term trend of the stock market, where there is a general increase or decrease in stock prices over an extended period. For example, if the stock market has been consistently increasing over the past 5 years, this would be considered a major uptrend.
- Market trend: This refers to the direction of stock-market prices over a several-month period. For example, if the stock market has been consistently decreasing over the past 3 months, this would be considered a downtrend.
These examples illustrate how trends can be used to describe the overall movement of the stock market or a particular stock. By analyzing trends, investors can make informed decisions about buying or selling stocks.