Basics Intermediate: Understanding Bull and Bear Markets

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1.
Bull market investors seek _______ more than anything.
Choose wisely. There is only one correct answer.
Growth. Bull markets are about rising prices, and rising prices are what growth is about. Therefore, income and dividends are secondary.
2.
What was the longest bear market in the United States?
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The Great Depression. By far, this was the longest bear market.
3.
Selling short involves _______.
Choose wisely. There is only one correct answer.
Selling when prices are high and buying when prices fall. This is the reverse of the buy low, sell high strategy. It attempts to take advantage of falling prices.
4.
The net advance measures the difference between the number of stocks advancing in price and the number declining in price.
Choose wisely. There is only one correct answer.
True. From this comes the advance-decline line.
5.
What does the advance-decline line use to forecast market trends?
Choose wisely. There is only one correct answer.
A net advance. This figure measures the difference between the number of stocks advancing in price and the number declining in price.