A market that is declining is known as what?

Question

Quizplus · Accepted Answer

A declining market is commonly referred to as a bear market, in which the prices of securities are falling, and investor confidence and optimism are low. Option A is incorrect because an oversold market refers to a situation where prices have dropped significantly, and investors are selling off their positions, leading to an eventual rebound. Option C is incorrect because an overconfident market refers to a situation where investors are overly optimistic about the future of the market, leading to overvalued securities. Option D is incorrect because a bull market is a situation where prices are rising, and investor confidence is high.

A Market That Is Declining Is Known as What