What defines a bull market in terms of stock prices?

A bull market is characterized by rising stock prices, reflecting an overall upward trend in the financial markets. This increase typically indicates investor confidence and encourages buying, as people believe that prices will continue to rise. During a bull market, economic indicators often show positive growth, and factors such as low unemployment and strong corporate profits tend to contribute to the optimistic outlook.

The other options describe different market conditions: declining stock prices would define a bear market, stable stock prices indicate a stagnant market without significant movement, and volatile stock prices refer to markets that experience sharp fluctuations in price, which can occur in both bull and bear markets but does not distinctly define either.