1. Business & Finance
Beginner's Corner
 

What is a Rally in the Stock Market?

A rally is a term used to describe a sudden rise in stock prices, especially after a period of falling ones.  [For example, if the stock market drops in the morning and investors rush in to buy companies at the cheaper prices, the stock market has rallied.]

If the increase in stock prices holds up, journalists and financial professionals refer to it as a sustained rally.  If it continues for several weeks or months, it is referred to as a bull market.

Additional Information:
What is a Bull Market
What is a Bear Market

Get more of your questions answered:
Back to The Basics
Back to Beginner's Corner

Subscribe to the Newsletter
Name
Email

Discuss in my forum

©2012 About.com. All rights reserved.

A part of The New York Times Company.