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Simple English definitions for legal terms
fundamental trend
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A quick definition of fundamental trend:
A fundamental trend is a long-term pattern in the stock market that shows a general increase or decrease in stock prices over an extended period. It is also known as a major trend and can be seen in the direction of stock-market prices over several months. In simpler terms, it is a way to understand whether the stock market is going up or down for a long time.
A more thorough explanation:
Definition: A fundamental trend, also known as a major trend, is a long-term pattern of stock market prices that shows a general increase or decrease over an extended period. It is a direction of stock-market prices over several months.
Example: For instance, if the stock market has been consistently increasing over the past few years, this would be considered a fundamental trend. On the other hand, if the stock market has been decreasing over the same period, this would also be a fundamental trend.
Explanation: The example illustrates how a fundamental trend is a long-term pattern of stock market prices that shows a general increase or decrease over an extended period. It is a direction of stock-market prices over several months. In the first example, the fundamental trend is upward, while in the second example, it is downward.