b.
gradually became worthless.
A Bull Market refers to a period in the stock market characterized by rising prices and investor optimism. Typically, it is defined as a time when stock prices increase by 20% or more from recent lows. Bull markets are often associated with strong economic conditions, high employment rates, and investor confidence, encouraging buying and investment. This contrasts with a Bear Market, where prices decline and pessimism prevails.
In a simple sense, the failure of Bear Stearns had a negative effect on stock prices. When a major bank such as Bear Stearns (which had been in business since the great depression) fails, consumer confidence is lowered significantly. Investors lose confidence in the stock market as well. As they lose confidence, it is common to sell assets. As assets are sold, the entire market is flooded with supply. When the supply is very high and the demand is very low, stock prices are forced down.
Maintaining a high stock price allows a company to access the capital markets by issuing more stock at these higher prices and bringing in more cash for the company to use in its business. A high stock price is also a sign of investor confidence in the company, as well as a necessary requirement to maintain a stock exchange listing or bring in institutional investors as holders of the stock.
It is simply calculations, such as if there will be a stock market crash, or a high rise in stock prices.
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The fluctuation of high and low stock prices in the market is influenced by factors such as company performance, economic conditions, investor sentiment, market speculation, and geopolitical events.
There are many benefits of knowing the Bank of America stock prices. Knowing the stock prices, someone can determine if the price it low enough to purchase the stock, or high enough to sell it if one owns some.
b. high unemployment
An investor who owns stocks in many different companies would most likely see a rise in the overall value of her portfolio during a bull market, when investor confidence is high and stock prices generally increase. Additionally, positive economic indicators, such as strong GDP growth or low unemployment, can contribute to rising stock prices across multiple sectors. If the companies in her portfolio report strong earnings or favorable news, that can also drive up the overall value.
Bulls and Bears refer to two common market trends, those of optimism and pessimism respectively. In a Bull market, the trend is upward and buyer confidence is high; Bear market, the exact opposite.
it means a high = bull market and a low = bear market
Reaching a 52-week high in the stock market is significant because it indicates that the stock's price has reached its highest point in the past year. This can suggest positive momentum and investor confidence in the company, potentially leading to further price increases.