What characterizes a bull market?

A bull market is characterized by a sustained increase in securities prices, typically by 20% or more from a recent low. It is indicative of growing investor confidence, robust economic conditions, and expectations of continued price increases. In a bull market, there is often a strong demand for stocks, which can lead to heightened optimism among investors and traders alike, motivating them to buy more. The upward momentum is frequently fueled by positive news, economic growth indicators, or earnings reports that exceed expectations.

The other options describe differing market conditions: some relate to downturns or stability rather than growth. For instance, falling securities prices denote a bear market, while stable prices do not exhibit the upward trajectory essential to defining a bull market. Additionally, high volatility and uncertainty are more indicative of turbulent market conditions rather than the consistent upward movement associated with a bull market. Thus, the essence of option C encapsulates the defining trait of what constitutes a bull market: an environment where securities prices are rising or anticipated to rise.