Which of the statements given below is are correct regarding ldquo bear market rdquo It refers to fa...........

Finance Financial Markets

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Which of the statements given below is/are correct regarding “bear market”?

It refers to fall in the value of investments

Investors rush to buy stocks instead of selling

Unemployment levels may rise

Select the correct answer using the codes given below:

1 only

2 and 3 only

1 and 3 only

1, 2 and 3

Explanation:

A bear market is one that is in decline, typically having fallen 20% or more from recent highs. Share prices are continuously dropping, resulting in a downward trend that investors believe will continue, which, in turn, perpetuates the downward spiral. During a bear market, the economy will typically slow down and unemployment will rise as companies begin laying off workers.