If you purchase AT&T stock at $100 a share in August, and each month AT&T stock falls consistently, what would BEST describe the stock market during that time?

Question 1 options:

Bear Market

Bull Market

Inflated Market

Deflated Market

The correct answer is: "Bear market"

The expression bear market describes an stock market in which there is a sustained tendency of decreasing prices. In this market situation, investors expect prices to decrease in a short period of time and try to profit from that, for instance, by using short sale operations.

In the opposite situation, in which prices experience a sustained increase, the market would be denominated a bull market.