Characteristics of a Bull Market

B

The correct answer is B. Bull market.

A bull market is a financial market condition in which securities prices are generally rising. It is typically associated with investor optimism, economic recovery, and expansion. During a bull market, investors are generally optimistic about the future performance of the market, and as a result, they are willing to buy securities in anticipation of future price increases.

A bull market is characterized by a sustained period of rising prices across a broad range of asset classes, including stocks, bonds, commodities, and real estate. This can lead to a positive feedback loop, as rising asset prices can stimulate economic growth and lead to further price increases.

In contrast, a bear market is a market condition in which securities prices are generally falling. It is typically associated with investor pessimism, economic contraction, and recession. During a bear market, investors are generally pessimistic about the future performance of the market, and as a result, they may be reluctant to buy securities.

OTC (Over-The-Counter) refers to a market where securities are traded directly between two parties, rather than through a centralized exchange. OTC markets are typically less regulated than exchange-traded markets and can be more susceptible to fraud and manipulation.

A dealer's market is a market in which dealers, rather than individual investors, dominate trading activity. In a dealer's market, dealers buy and sell securities from their own inventory and profit from the difference between the buying and selling prices. Dealer's markets are typically more common in fixed-income markets than in equity markets.