What defines a bull market in terms of stock performance?

A bull market is characterized by a sustained period of rising prices in the stock market, typically defined as an increase of 20% or more from recent lows. This threshold marks a positive market environment, driving investor confidence and potentially leading to further gains as expectations for the economy remain optimistic. Investors typically engage more actively in purchasing stocks, anticipating continued growth.

The concept of a bull market implies that the overall market is experiencing upward momentum, which distinguishes it from stable periods or declines in stock prices. Options focusing on stable prices, decreases, or minor increases do not capture the essence of a bull market, which is about significant growth and positive investor sentiment.