Bull, Bear market... Why Bull and bear?

• popikachu

  22 Feb 08, 23:46

  Bull and bear are use to discribe how well is a market doing right?
  I saw these in one of the newspaper...

  One thing i don't understand is that, why use bull and bear?

  Why not elephant and mouse?

  There should be a story or reason behind it right?
  anyone know?

• skeujin

  22 Feb 08, 23:52

  the bull comes from the term somewhat like "raging bull" means its moving fast.

  the bear comes from the term bearish which means its moving slow.

• popikachu

  23 Feb 08, 06:07

  Originally posted by skeujin:

  the bull comes from the term somewhat like "raging bull" means its moving fast.

  the bear comes from the term bearish which means its moving slow.

  hmm...

  i see...

  haha ^^

• Rhonda

  23 Feb 08, 08:34

  How are you, popikachu and skeujin?  Hope all's well with you guys!

  Here's some info I found :

   

  Where did the bull and bear market get their names?

  First of all, let's remember that bears are sluggish and bulls spirited and burly. The terms are used to describe general actions and attitudes, or sentiment, either of an individual (bear and bull) or the market. A bear market refers to a decline in prices, usually for a period of a few months, in a single security or asset, group of securities or the securities market as a whole. A bull market is when prices are rising.
  
  The actual origins of these expressions are unclear. Here are two of the most frequent explanations given:

  1. The terms "bear" and "bull" are thought to derive from the way in which each animal attacks its opponents. That is, a bull will thrust its horns up into the air, while a bear will swipe down. These actions were then related metaphorically to the movement of a market: if the trend was up, it was considered a bull market; if the trend was down,  it was a bear market.
     
     
  2. Historically, the middlemen in the sale of bearskins would sell skins they had yet to receive. As such, they would speculate on the future purchase price of these skins from the trappers, hoping they would drop. The trappers would profit from a spread - the difference between the cost price and the selling price. These middlemen became known as "bears", short for bearskin jobbers, and the term stuck for describing a downturn in the market. Conversely, because bears and bulls were widely considered to be opposites due to the once-popular blood sport of bull-and-bear fights, the term bull stands as the opposite of bears.

   

  Source : http://www.investopedia.com/ask/answers/129.asp

• popikachu

  23 Feb 08, 12:20

  hmm cool!