What term refers to a stock market characterized by a general rise in prices and trading volume over a period of time?

What term refers to a stock market characterized by a general rise in prices and trading volume over a period of time?

• A. Bear market
• B. Bank acceptances
• C. Bull market
• D. Demand draft

Answer: (C)

The term that describes a stock market characterized by a general rise in prices and trading volume over a period of time is known as a bull market. In this context, a bull market indicates optimism among investors, leading to increased buying activity and driving stock prices upward. This phenomenon is often related to overall economic growth, where positive news, such as strong GDP growth, low unemployment, or increased corporate profits, contributes to heightened investor confidence. A bull market can span months or even years, and it is typically associated with broader economic conditions that support growth. Recognizing these trends is crucial for investors looking to capitalize on the upward momentum in stock prices. The other terms do not correspond to the description provided; a bear market, for example, reflects a decline in prices, while bank acceptances and demand drafts relate to financial instruments and payment mechanisms, respectively, rather than market trends.

The term that describes a stock market characterized by a general rise in prices and trading volume over a period of time is known as a bull market. In this context, a bull market indicates optimism among investors, leading to increased buying activity and driving stock prices upward. This phenomenon is often related to overall economic growth, where positive news, such as strong GDP growth, low unemployment, or increased corporate profits, contributes to heightened investor confidence.

A bull market can span months or even years, and it is typically associated with broader economic conditions that support growth. Recognizing these trends is crucial for investors looking to capitalize on the upward momentum in stock prices. The other terms do not correspond to the description provided; a bear market, for example, reflects a decline in prices, while bank acceptances and demand drafts relate to financial instruments and payment mechanisms, respectively, rather than market trends.