Here's Why We Call Them 'Bear' And 'Bull' Markets

When stocks are up 20% from a low, we’re in a bull market. And when stocks are down 20% from a high, we’re in a bear market.

But where do these names come from?

According to Scottrade, these characterizations were designated because of the respective animals’ methods of attack.

When you get gored by a bull, your usually getting launched into the air. And when a bear attacks you, it’s coming down on you from its standing position.

NOW WATCH: Money & Markets videos

Want to read a more in-depth view on the trends influencing Australian business and the global economy? BI / Research is designed to help executives and industry leaders understand the major challenges and opportunities for industry, technology, strategy and the economy in the future. Sign up for free at research.businessinsider.com.au.