The Stock Market – Getting Familiar with ‘Animals’

The stock market is the economic backbone of the United States economy. Shares or stock quotes are traded through stock exchanges or open markets every day.

The stock market, often referred to as the stock market, is the driving force behind the United States economy and serves as the key to many companies’ money-raising or capital-infusion strategies.

The market is divided into two main sectors, the primary and secondary markets. New shares are first offered on the primary market. Subsequent trading of the same shares takes place on the secondary market.

Animal breeds are used to describe general market behavior, from bulls to chickens. These animal nomenclatures are often used to differentiate situations and people that affect the market.

the bull market

A bull market occurs when people have capital to buy consumer products: stocks and Gross Domestic Product (GDP) are rising.

During bull markets, the price of most stocks increases. It may be the ideal time to buy stocks cheap and make a profit by selling them later.

While bull markets are a great time to start investing, they just don’t last forever. Eventually, stocks become overvalued and quickly lead to a slowdown in the market.

The bullish nomenclature has left the halls of Wall Street and is often used in the public realm. People who believe that the market is strong and rising are often called bulls.

the bear market

As mentioned above, when the market is rising, it is called a bull market. However, when it is consistently heading in the opposite direction, this is known as a bear market. Bear markets are difficult times for average investors to buy stocks that generate profits.

During bear markets, many brokers turn to alternative techniques such as “short selling” to make money.

Another strategy that tends to prevail in a bear market is to wait out the bear side and wait for the bull market to return. Investors who believe the market will start to turn sour are often referred to as bears.

cautious investor

Cautious investors are often referred to as chickens. Chickens are afraid of losing money and often only invest in money markets or stop investing altogether.

the big loser

Investors who love high-risk stocks and are not afraid of losing money are known as pigs. Pigs are often the investors that create the biggest profits for stockbrokers. They often look for the “big scoring” stock, a stock that they hope will see big gains. These people often invest without extensive research and can lose significant amounts of money if their investments fail.

With all the animals associated with the stock market, it can be hard to tell Wall Street from the Bronx Zoo.