Answers:

1. A bear market is when prices are going down. 3 main characteristics define a bear market:

• A downward trend in the price of an asset.
• The state or condition of being bearish, which includes negative sentiment and expectations.
• A period in which the prices of securities fall much more than usual, generally to below their periodic moving average.

2. A bull market is when prices are rising. 3 main characteristics define a bull market:

• A rising trend in the price of an asset.
• The state or condition of being bullish, which includes positive sentiment and expectations.
• A period in which the prices of securities rise much more than usual, generally to above their periodic moving average.