Stock market basics
Bear market
Definition
A sustained fall in prices. By common convention, a drop of 20% or more from the last high.
Example
Suppose a broad index peaks at 5,000 and slides to 4,000 over several months. That 20% drop meets the common definition of a bear market. Getting back to 5,000 then takes a 25% gain from 4,000, because the rebound is measured from a lower base.
Hypothetical numbers, for illustration only.
Also defined in
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