Bull And Bear Markets For Penny Stocks

Dec. 2, 2011 - PRLog -- Even penny stocks have their ups and downs

The use of "bull" and "bear" to describe markets comes from the way the animals attack their opponents. A bull thrusts its horns up into the air while a bear swipes its paws down. These actions are metaphors for the movement of a market. If the trend is up, it's a bull market. If the trend is down, it's a bear market.

As stated before, a bull market refers to a market that is on the rise. It is indicated by a persistent increase in stock market share prices. In such times, investors tend to believe that the uptrend will continue in the long term. Typically, the country's economy is strong and employment levels are high. A bull market is a rising market.

On the contrary, a bear market is one that is in decline. In bear market stock share prices are continuously dropping, resulting in a downward trend that investors believe will continue in the long run, which, in turn, perpetuates the spiral. During a bear market, the economy will typically slow down and unemployment will rise as companies begin laying-off workers. Generally speaking, since the market is determined by investing parties’ attitudes, these terms also denote how investor's feel about the market and the ensuing trend.

To view the full article visit http://gotmomostocks.com/essentials/zains-corner/25-the-i... in our Stocks 101 section.

GotMomoStocks.com has several other articles on the basics of the stock market that provide enlightened and helpful strategies to attack the market.

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