The stock market is the economic backbone of the US economy. Stocks or stock quotes are traded through exchanges or open markets every day.
The stock market, often referred to as the stock market, is the driving force behind the United States economy and serves as the key to many companies’ money-raising or capital-infusion strategies.
The market is divided into two main sectors, the primary market and the secondary market. The new shares are first offered on the primary market. Subsequent trading of the same shares takes place on the secondary market.
Animal breeds are used to describe the general behavior of the market, from bulls to chickens. These animal nomenclatures are often used to differentiate situations and people that affect the market.
the bull market
A bull market occurs when people have capital to buy consumer products: Stocks and Gross Domestic Product (GDP) are rising.
During bull markets, the price of most stocks rises. It may be the ideal time to buy cheap stocks and make a profit by selling them later.
While bull markets are a great time to start investing, they just don’t last forever. Stocks eventually become overvalued and quickly lead to a downturn in the market.
The bull nomenclature has left the halls of Wall Street and is often used in the public arena. People who believe that the market is strong and rising are often called bulls.
the bear market
As mentioned above, when the market is rising, it is called a bull market. However, when it is constantly heading in the opposite direction, this is known as a bear market. Bear markets are tough times for average investors to buy stocks that make a profit.
During bear markets, many brokers turn to alternative techniques like “short selling” to make money.
Another strategy that tends to prevail in a bear market is to wait for the bear side to pass and wait for the bull market to return. Investors who believe that the market will start to turn sour are often called bears.
cautious investor
Cautious investors are often referred to as chickens. Chickens are afraid of losing money and often only invest in the money markets or stop investing altogether.
the big loser
Investors who love high-risk stocks and aren’t afraid of losing money are known as pigs. Pigs are often the investors that create the biggest profits for stockbrokers. They often look for the “big score” stock, a stock that they expect will have big returns. These people often invest without extensive research and can lose significant sums of money if their investments fail.
With all the animals associated with the stock market, it can be hard to tell Wall Street from the Bronx Zoo.
