Question

2. The stock market is experiencing a bear market. Trading volume has been high for weeks. Even the most stable stocks are feeling the effects. Bellwether Company's stock price was relatively stable for decades, but it has declined recently. Why is the price of Bellwether Company's stock likely to fall?

Answer 1

A bear market is a market where the share prices are falling. The prices are falling because of a decrease in the economic growth or even a sudden natural disaster occurring or even changes in the economic variables, even exchange rate fluctuations.