In the financial market, a 'bull market' refers to a large price increase in the market up to 20% from the previous price while a 'bear market' refers to a significant price decrease up to 20% from the previous price.
The term 'bullish' is used when there is a situation where there is a price surge when investors become aggressive and positive and then the stock experiences an increase in price.
Meanwhile, investors use the word 'bearish' to describe the situation of falling in the market and usually stocks will be sold in large quantities at that time.
There are no solid sources why the names 'bear' and 'bull' are used to indicate price movements in the market.
However, there are several theories that explain the history of the use of these two terms that are used until now.
Among them is the way the two animals move in defending themselves and attacking the enemy.
The 'Bull' or bull uses its horns by sticking up to attack the enemy, and this is described as a bullish movement.
While the 'bear' uses his palm to attack the victim to the ground, depicting a drop in prices.
There are other sources that say the word 'bear' in the market was originally used from an old English proverb from the 16th century, which is "don't sell the bear's skin before you've killed him" which means "don't sell the bear's skin before catching it".
The phrase exists because people in the early 18th century used to like to sell something that was not yet their property.
In order to get more income, they buy the goods at a cheaper price than the price they will sell.
This group is known as 'bear-skin jobbers' and over time they are simply called 'bears'.
Bear-skin jobbers are middlemen who sell bearskin first before receiving the goods.
They speculate on the upcoming purchase price in the hope that it will drop so that they can profit from the difference.
Now, it is called 'shirt selling'.
Thus, the word 'bear' began to be used during the South Sea Bubble in 1720 when many investors used the same sales tactics as bear-skin jobbers.
The term has been used to describe any stock that is sold by speculators in the stock market in the hope that the purchase price will drop when they sell the stock and they can make a profit.
Therefore, the term 'bear' has continued to describe the decline in prices in the market.
The word 'bull' was chosen because it is opposite to each other.
Furthermore, another less well-known theory about this issue is that once upon a time, the London Stock Exchange had a bulletin board that was filled with bulletins (bull) during an upward trend while when the market trend decreased, the board would be empty (bare). .
