What is a "bear market" characterized by?

A bear market is specifically characterized by declining prices, typically reflecting a decrease of 20% or more in a broad market index over a sustained period, often accompanied by widespread pessimism among investors. This phenomenon is usually associated with economic downturns, where negative sentiments prevail, leading to a reduction in investor confidence.

In the context of market movements, options that describe rising prices, stability, or high investor optimism do not align with the fundamental attributes of a bear market. A market with rising prices would instead be indicative of a bull market, while stability and neutrality do not reflect the negative trends seen in bear markets. Similarly, a market characterized by high investor optimism would suggest increasing prices and positive investor sentiment, which contrasts sharply with the bear market's defining features of despair and declining values.