Question

In 2008 and early 2009, share values declined sharply as the global economy fell into a severe recession. This type of stock market is referred to as a:

Answer 1

This type of stock market is referred to as a bear market.

Step-by-step explanation:

A bear market is used to refer to financial market trend in which securities price falls by 20% or more. In a bear market when the price of securities fall consistently it leads to pessimism and investors start selling securities.

A bear market can last for a few weeks to years.

A bear market is opposite of bull market in which security prices are rising and are expected to rise further.