A bubble is an economic cycle characterized by rapid expansion followed by a contraction.
| Bubble | A bubble is an economic cycle characterized by the rapid escalation of asset prices followed by a contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the asset and driven by exuberant market behavior. When no more investors are willing to buy at the elevated price, a massive sell-off occurs, causing the bubble to deflate. | Read More » | Fundamentals | Fundamentals consist of the basic qualitative and quantitative information that underlies a company or other organization's financial and economic position. | Read More » | | Irrational Exuberance | Irrational exuberance refers to investor enthusiasm that drives asset prices up to levels that aren't supported by fundamentals. | Read More » | | Sell-off | Sell-off is the the rapid and sustained selling of securities at high volumes that causes a sharp drop in the value of the traded securities. | Read More » | | Paradigm Shift | A paradigm shift is a major change in the modality or process by which something is understood or accomplished. | Read More » | | | | | CONNECT WITH INVESTOPEDIA | | | | | |
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