What Is a Bear Market?
FINRA says a fall of 20 percent or more in a broad market index generally meets the definition.
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1.What is the usual rule for a bear market?
FINRA says a fall of 20 percent or more in a broad market index generally meets the definition.
2.What does FINRA call a smaller fall of at least 10 percent?
FINRA calls a fall of at least 10 percent a correction.
3.How do the two official definitions differ?
The Investor.gov glossary adds a window of at least two months, while FINRA gives none; the rule is a convention, not a law of nature.
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Sources (6)
- Key Terms for Tough Times: The Vocabulary of Stressed Markets (FINRA Investor Insights)
- Bear Market (Investor.gov Glossary, SEC)
- Stock Market Crash of 1929 (Federal Reserve History)
- Financial Stability Review, May 2020 (ECB)
- U.S. Equities Market Attributes June 2022 (S&P Dow Jones Indices)
- Eigene Rechnung: Indexstand 5.000
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