General Securities Representative (Series 7) Practice Exam – Your All-in-One Guide to Exam Success!

A market characterized by rising prices is best described as a bull market. In financial terms, a bull market refers to a prolonged period during which the prices of securities are consistently rising or are expected to rise. Generally, a bull market is marked by a rise of 20% or more in stock prices, often fueled by positive investor sentiment, strong economic indicators, and overall optimism about the future performance of the financial markets.

This context of rising prices contrasts sharply with the other terms. A bear market describes a period of declining prices, a correction reflects a short-term decline within a longer-term uptrend, and a recession refers to an economic downturn impacting the overall economy, typically leading to lower consumer spending and investment. Thus, the defining characteristic of a bull market is the sustained upward movement in prices, making it the correct choice for describing a market characterized by rising prices.