Legal Definitions - trend

Definition: A trend is a pattern in the stock market or in a particular stock's price. It refers to the general direction of stock prices over a period of time.

Examples:

• Major trend: This refers to a long-term trend of the stock market, where there is a general increase or decrease in stock prices over an extended period. For example, if the stock market has been consistently increasing over the past 5 years, this would be considered a major uptrend.
• Market trend: This refers to the direction of stock-market prices over a several-month period. For example, if the stock market has been consistently decreasing over the past 3 months, this would be considered a downtrend.

These examples illustrate how trends can be used to describe the overall movement of the stock market or a particular stock. By analyzing trends, investors can make informed decisions about buying or selling stocks.