Which term describes a financial market in which prices are rising or are expected to rise?

A financial market in which prices are rising or are expected to rise is referred to as a bull market. This term is used to indicate strong investor confidence, with the expectation that the upward trend in asset prices will continue. In a bull market, the overall economic conditions are usually favorable, leading to increased investment and spending.

The concept of a bull market can be observed in various financial instruments, including stocks, bonds, commodities, and real estate. Investors often take optimistic positions, believing that the upward momentum will persist. This phenomenon can create a cycle where increased buying activity further propels prices higher.

In contrast, a bear market is characterized by declining prices and pessimism among investors. A stagnant market indicates little to no movement in prices, showing a lack of investor interest or activity. A volatile market, while it may experience rising prices at times, is primarily defined by significant fluctuations in price, both upwards and downwards, which does not necessarily imply a consistent upward trend.