What is a characteristic of a bear market?

A bear market is characterized by a significant decline in stock prices, typically defined as a decrease of 20% or more in major stock indexes over a sustained period. This pattern often reflects widespread pessimism among investors, leading to a reduction in stock valuations and a generally negative outlook on market conditions.

The correct choice clearly aligns with this definition, emphasizing the prevalence of falling stock prices during a bear market. While other conditions may exist during different market phases—such as increased volatility or periods of stabilization—none of those encapsulate the core characteristic of a bear market as effectively as the significant decline in stock values.