How are bull markets characterized?

Bull markets are characterized by rising prices in securities and are often marked by increased investor confidence and a positive economic outlook. During such periods, the overall market experiences prolonged price increases for stocks and other assets, typically driven by factors such as strong corporate earnings, overall economic growth, and low unemployment rates.

This optimism leads to a higher number of buyers than sellers in the market, pushing prices even higher. Investors tend to feel positive about future prospects, which encourages more investment and spending, creating a reinforcing cycle of growth. The phenomenon is generally seen as a good time for investment, as the likelihood of realizing profits is heightened.

The other options describe market conditions that do not align with the characteristics of a bull market. Falling prices indicate a bear market, high market volatility could imply uncertainty, and investor panic typically happens during market crashes or corrections. Therefore, the essential defining feature of a bull market remains the rising prices, representing a robust investor sentiment and economic environment.