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A bear market refers to a period of months or years during which prices of some listed securities are consistently falling. The condition of bear market is just opposite of bull market , in which prices of securities rise on consistent basis.The terms bull and bear are used to describe the present behavior of stock market, i.e whether the value of stocks are appreciating or depreciating.In bear market there is lack of confidence in the market, often people wait here for bulls to drive the prices up again. How a bear market works is discussed below : To identify this having a good knowledge of current market conditions is must. Often when market is bearish at least 80% of all stocks price start falling or major decline in the indexes can be witnessed. There are several factors which causes such movements in the market like economic cycles, individual sentiments of traders and investors . A weakening economy as indicated by low employment ratio, decrease in profits...

The goal of analyzing a company's fundamentals is to determine the intrinsic worth of the company's stocks. For doing the same certain sets of inputs are required.All related economic, financial ,qualitative and quantitative factors are examined to determine true worth of company. Both discounted cash flow and net asset value can be used . Some ratios like price to earning ratio , price to book value ratio can be calculated to know true worth of the stock and compare it with its listed price on stock exchange. Such analysis helps traders and investors to understand is stock under-valued or over-valued. If a stock is undervalued then it is a good time to buy it at low price and if it is overvalued then it may be sold to book profits. Following are some of the guidelines to begin with fundamental analysis of stocks: Annual reports, half yearly reports are released by the companies. Read them to understand about the income statement, profit statement and other necessary d...