The stock market refers to the collection of markets and exchanges where the issuing and trading of equities or stocks of publicly held companies, bonds, and other classes of securities take place. This trade is either through formal exchanges or over-the-counter (OTC) marketplaces.
Also, a stock market, equity market or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only traded privately.
A bull market is a market financial situation which is characterized by the investor’s confidence, optimism and positive expectations that good results will continue.
The bull market is generally related to the stock market but it applies to all financial markets like currencies, bonds, commodities etc. During a bull market, everything in the economy is amazing like growing GDP, increased job, rising stock prices etc.
Bull markets often lead to the overvaluation of the stocks as the investors are highly optimistic and believe that the stock will always go up.
The opposite of a bull market is a bear market, which is typically characterized by bad economy, fewer jobs, recession and falling share prices. The investor’s behaviour during a bearish market is highly pessimistic as they fear that the stocks will go down and down.
Bear markets make it tough for investors to pick profitable stocks for short term.
Players of stock market:
There are many different players associated with the stock market, including stockbrokers, traders, stock analysts, portfolio managers and investment bankers. Each has a unique role, but many of the roles are intertwined and depend on each other to make the market run effectively.
