What is a bull market?

A bull market is characterized by an extended period of security price increases. During this time frame stocks will typically increase faster than the historical average. This type of market trend will often correspond with escalating investor confidence, increased investing, and high volume. A bull market is the exact opposite of a bear market. Bull markets will often see market corrections, or short term price reductions, but will continue the upward trend until it hits its market top. A bull market can also be used to describe certain sectors of a market, rather than the whole market itself.