What are bull and bear markets?

• A. Bull market is rising prices and optimism; bear market is falling prices and pessimism.
• B. Bull market is falling prices; bear market is rising prices.
• C. Bear market is rising prices and optimism; bull market is falling prices.
• D. Bull market is flat markets.

Answer: (D)

A bull market means prices are rising and investor optimism is high. When people expect gains to continue, they buy more, pushing prices up over time. A bear market means prices are falling and investor pessimism is common; negative sentiment leads to more selling and further declines. Flat markets don’t fit these trends, since there’s no sustained rise or fall. So the description that fits best is: bull market = rising prices and optimism; bear market = falling prices and pessimism.