Glossary

A bear market is a condition in which securities prices fall by 20% or more from recent highs. It often occurs during economic downturns and is marked by widespread pessimism and negative investor sentiment.

A bull market refers to a period in which the prices of securities are rising or are expected to rise. It is characterized by investor confidence, strong economic indicators, and a general sense of optimism in the market.

Capital gains are the profits earned from the sale of an asset, such as stocks or real estate, when the selling price exceeds the purchase price. These gains are subject to taxation and can significantly impact an investor's overall return.

A dividend is a portion of a company's earnings distributed to shareholders, typically in the form of cash or additional shares. Dividends provide a way for investors to earn a return on their investment without selling their shares.

Equity represents ownership in a company, typically in the form of stocks. It signifies the value of an owner's interest in the business after all liabilities have been deducted, and it can appreciate or depreciate based on the company's performance.