What is a bull market?

A bull market is defined as a market condition where prices are rising or are expected to rise. This situation is typically characterized by widespread investor optimism, strong economic indicators, and increased demand for securities. When investors are confident in the market's upward trend, they are encouraged to buy stocks, resulting in further price increases. Bull markets can provide an ideal environment for investment growth as more investors enter the market, driving prices higher.

In contrast, the other choices illustrate different market conditions. A falling market indicates bearish conditions, where prices drop or are anticipated to drop. Stability with no clear trends suggests a sideways market, which lacks significant upward or downward movements. High levels of uncertainty describe a volatile market, where swings in prices can occur without a clear direction. Understanding these distinctions helps investors navigate various market dynamics effectively.