Which term best describes a prolonged increase in stock prices?

A prolonged increase in stock prices is best described as a bull market. This term reflects a sustained period where investor confidence is high, leading to a rise in stock prices. In a bull market, economic indicators often show growth, and companies typically perform well, contributing to increased investor optimism and investment activity.

This phenomenon often results in higher trading volumes and can last for months or even years, reflecting positive sentiment in the economy. Understanding a bull market is essential for investors as it influences their strategies, encouraging buying rather than selling.

In contrast, a bear market signifies a prolonged decline in stock prices, while a market correction refers to a short-term decline following a bull market, typically seen as a healthy adjustment. Market stagnation indicates a lack of significant movement in stock prices, neither growing nor declining substantially. Thus, the term "bull market" accurately captures the essence of continuous price appreciation in stocks.