Depression

Depression is the state of drastic decline in prices as well as in business activity. It also refers to the period of unemployment and stagnation of national economy of a country. As a market term it refers to a long period of seriously reduced business activity and fall of prices. The state of depression is taken as a serious loss to investors because there are neither buyers nor sellers and the investors have to remain stuck to their investments and stocks.

Bearish

(Bear Factor, Bearish Sentiment or Short Gide of the Market)

The term ‘Bearish’ refers to the downward trend in prices. A market is called Bearish when there is a general trend of depression in the prices and volume of business transactions. Bearish Sentiment in a market brings the prices further down because every Bear Operator wants to sell his stocks at present. This trend of depression suits a Bear who sells his stock now and buys in future when prices fall further. The Bearish market reduces the profit margin.