In finance, a bear market refers to a market condition where prices are falling, investor confidence is low, and there is an overall pessimistic sentiment. On the other hand, a bull market is characterized by rising prices, high investor confidence, and an overall optimistic outlook on the market. The terms "bear" and "bull" are derived from how the animals attack their opponents - a bear swipes its paws downward, symbolizing a downward trend in the market, while a bull thrusts its horns upward, symbolizing an upward trend in the market.