What are Bulls and Bears?
 

 

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What are Stocks/Shares? 

Why do I buy Stocks?

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How do I claim a Stock?

Why do companies issue shares?

What are types of stocks?

How are the stock prices decided?

What are BULLS and BEARS?

Why do stock prices change?

Who are the share brokers?

Risks of Shares

 Virtual Stock Market Game

Some myths: Fear on investing in stock markets

Real Stock Exchanges in India

Sensex: A brief Intro

 

The thing you always wanted to know: BULLS and BEARS

No they are not animals. They are the stock market players. In short,

Bulls cause the market price of a share to go up. Like a bull, it thrusts its opponent up with its horns. The share prices go up because of bulls.

Bears cause the market price to go down. Like a bear, it strikes its opponent down with it’s paws. The share prices go down because of bears.

Why do they do that? Both are required to keep the market in balance. Suppose if a stock price goes up and becomes much higher the real value (Overvalued shares) then it can lead to a dangerous situation – the entire market may crash. So, the bears are there to reduce the stock price. When the share prices are all going up, it’s called Bull Market and when going down, it’s Bear Market.

In bull market, buying a stock is easy. You don’t need to worry at all there, you can easily pickup a profitable stock. You can then wait in the hope that prices will go further up and you’ll sell shares at a premium or profit.

In bear market, everything becomes difficult. You can’t decide which one to buy, everything is going down the tunnel! You never know if you’ll ever get back the money you invested. What do you do? You wait till you feel that bear market is going to end soon and buy stocks with a hope of a bull market in near future. If you have already bought shares, then? You wait and wait, till the sun shines – the bull market comes.