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Bubble theory |
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Bubble theorySecurity prices sometimes move wildly above their true values, or the price falls sharply until the "bubble bursts.".Bubble theory Similar MatchesBubbleBubbleThe phenomenon of rising share prices amid a mood of general euphoria, leading (inevitably, according to wiser heads) to a 'bursting' and a reversal of the prices and the mood. BubbleBubbleA rise in the price of an asset based not on the current or prospective income that it provides but solely on expectations by market participants that the price will rise in the future. When those expectations cease, the bubble bursts and the price falls rapidly. Asset bubbleAsset bubbleSee bubble. Bubble economyBubble economyTerm for an economy in which the presence of one or more bubbles in its asset markets is a dominant feature of its performance. Japan was said to be a bubble economy in the late 1980s. |
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