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A Stock market bubble is a type of economic bubble in which an exaggerated bull market where the value of stocks listed on a stock exchange rise dramatically upon a wave of public enthusiasm.The dot-com boom of the late 1990s is one example. The biotech boom in the 1980s is another. Still other examples of stock market bubbles include Japanese stocks in the late-1980s, Nifty 50 stocks in the early 1970s, and Taiwanese stocks in 1987. A stock market bubble may set the stage for a later stock market crash, continuing our example, the Stock Market Crash of 2002.
1 See also
- Speculation
- Behavioral finance
- TulipomaniaThe term tulipomania (alternatively tulip mania is used metaphorically to refer to any large economic bubble. The term originally came from the period in the history of the Netherlands during which demand for tulip bulbs reached such a peak that enormous
- South Sea Bubble
- Mississippi Scheme
- Railway maniaRailway mania was the term given to the speculative frenzy in Britain in the 1840s. It followed a common pattern: as the price of railway shares increased, more and more money was poured in by speculators, until the inevitable collapse. Unlike some stock
- Stock marketA stock market is a market for the trading of publicly held company stock and associated financial instruments (including stock options, convertibles and stock index futures). Traditionally such markets were open-outcry where trading occurred on the floors
- Tech bubble
- Financial marketThe financial markets are markets which facilitate the raising of funds or the investment of assets, depending on viewpoint. They also facilitate handling of various risks. The financial markets can be divided into different subtypes: Capital markets conss
- Stock market crash
2 External links
Accounts of the South Sea Bubble, John LawJohn Law ( 1671 April 21 1729 March 21) was a Scottish economist who believed that money was only a means of exchange and did not constitute wealth in itself; national wealth depended on trade. He is said to be the father of finance. He is responsible for and the Mississippi scheme, and the tulipomania can be read in Charles MacKay 's classic "Extraordinary Popular Delusions and the Madness of Crowds (1841) - available for free download from Project Gutenberg.
U.S. economic history
Stock market
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