In a bull market, what is the general trend of stock prices?

Prepare for the DSST Money and Banking Exam. Review key concepts with multiple-choice questions, and flashcards. Understand money and banking fundamentals to excel in your exam!

In a bull market, the general trend of stock prices is characterized by a steady increase. A bull market is typically defined as a period in which stock prices rise or are expected to rise significantly, often fueled by investor optimism, strong economic indicators, and increasing corporate profits. This positive sentiment encourages buying activity, which further drives prices upward.

During a bull market, investors are generally more confident and willing to invest in the stock market, leading to sustained upward trends in equity prices. This environment contrasts sharply with bear markets, where prices fall, or with more stagnant conditions where prices remain stable or fluctuate wildly without a clear upward trajectory. Thus, the answer that reflects the nature of stock price trends in a bull market is an increase that is steady over time.

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