Bull and bear market explained - Bull and bear market history - Origin of bull and bear market.mp4

A bull is someone who buys the securities, that is any financial asset which can be traded in the expectation of a price rise. A bear is the opposite, someone who sells the securities in expectation of a price decline. Bullish or bearish terms are used as a quick way to describe the market sentiment whether in upward or downward trend. In a bull market, there is strong demand and investors wish to buy the securities. As a result, share price will rise. The bear market is exactly opposite. In the bear market, demand is significantly lower than supply. More people are looking to sell than buy. As a result, share price will drop. How did bear and bull get into financial market? There are a number of theories for the origin of bull and bear markets. Here are two of the most frequent explanations. One of the explanation is, these terms are thought to derive from the way in which each animal attacks its opponents. A bull will thrust its horns up into the air, while a bear will swipe their paws downward. These actions were then related metaphorically to the movement of a market. The second explanation is, evidence suggests it originated with a proverb, don't sell the skin till you have caught the bear. By the 18th century, selling animal skin was a common means to earn your wage. There were middlemen in the bearskin trade who were called bearskin jobbers. These middlemen were caught selling bearskins that they did not own. That means the bears had not yet been caught. They sold the bearskin by speculating the price that they would have to pay the bear trappers for the skin. The goal would be to estimate the sale price higher than the price the trapper would charge. So the bearskin jobber would profit from the difference. Possibly the term bear originates from bearskin jobbers, and the term stuck for describing a downturn in the market. Due to the once popular bloodsport of bull and bear fights, bears and bulls were widely considered to be opposites. Hence the term bull stands as the opposite of bear. Historically, the bear came before the bull. This 18th century animal imagery caught on and bears and bulls have been in the stock market ever since. Thanks for watching! Don't forget to subscribe for future updates!