A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation.
Behavioral finance theory attributes stock market bubbles to cognitive biases that lead to groupthink and herd behavior. Bubbles occur not only in real-world markets, with their inherent uncertainty and noise, but also in highly predictable experimental markets.[1] Other theoretical explanations of stock market bubbles have suggested that they are rational,[2] intrinsic,[3] and contagious.[4]
^Smith, Vernon L.; Suchanek, Gerry L.; Williams, Arlington W. (1988). "Bubbles, Crashes, and Endogenous Expectations in Experimental Spot Asset Markets". Econometrica. 56 (5): 1119–1151. CiteSeerX 10.1.1.360.174. doi:10.2307/1911361. JSTOR 1911361.
^De Long, J. Bradford; Shleifer, Andrei; Summers, Lawrence H.; Waldmann, Robert J. (1990). "Noise Trader Risk in Financial Markets" (PDF). Journal of Political Economy. 98 (4): 703–738. doi:10.1086/261703. S2CID 12112860.
^Froot, Kenneth A.; Obstfeld, Maurice (1991). "Intrinsic Bubbles: The Case of Stock Prices". American Economic Review. 81 (5): 1189–1214. doi:10.3386/w3091. JSTOR 2006913.
^Topol, Richard (1991). "Bubbles and Volatility of Stock Prices: Effect of Mimetic Contagion". The Economic Journal. 101 (407): 786–800. doi:10.2307/2233855. JSTOR 2233855.
and 23 Related for: Stock market bubble information
A stockmarketbubble is a type of economic bubble taking place in stockmarkets when market participants drive stock prices above their value in relation...
Examples are the Roaring Twenties stockmarketbubble (which caused the Great Depression) and the United States housing bubble (which caused the Great Recession)...
underlying economic factors. They often follow speculation and economic bubbles. A stockmarket crash is a social phenomenon where external economic events combine...
A stockmarket, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims...
price bubble (バブル景気, baburu keiki, lit. 'bubble economy') was an economic bubble in Japan from 1986 to 1991 in which real estate and stockmarket prices...
In 2001, stock prices took a sharp downturn (some say "stockmarket crash" or "the Internet bubble bursting") in stockmarkets across the United States...
large bear markets. (see: Recession of 1960–61 and the dot-com bubble in 2000–2001) A bear market is a general decline in the stockmarket over a period...
The Poseidon bubble was a stockmarketbubble in which the price of Australian mining shares soared in late 1969, then crashed in early 1970. It was triggered...
the beginning of the Bombay stock exchange, stockmarkets in India, particularly the Bombay Stock Exchange and National Stock Exchange of India have seen...
Chinese stockmarketbubble, when monetary easing by the Chinese state in 2014 led to a bubble, but then a crash over 2015–2016, in Chinese markets. In February...
Boston The Nasdaq StockMarket (/ˈnæzdæk/ ; National Association of Securities Dealers Automated Quotations) is an American stock exchange based in New...
Railway Mania was a stockmarketbubble in the rail transportation industry of the United Kingdom of Great Britain and Ireland in the 1840s. It followed...
economic crisis Economic bubble List of banking crises List of largest daily changes in the Dow Jones Industrial Average Stockmarket crashes in India Dash...
A cryptocurrency bubble is a phenomenon where the market increasingly considers the going price of cryptocurrency assets to be inflated against their...
The Chinese stockbubble of 2007 (simplified Chinese: 中国股灾; traditional Chinese: 中國股災; pinyin: Zhōngguó gǔ zāi) was the global stockmarket plunge of February...
fever. This bubble may be related to the stockmarket or dot-com bubble of the 1990s. This bubble roughly coincides with the real-estate bubbles of the United...
"bubble" and the attempts by politicians to evade responsibility and prevent a Jacobite restoration. List of stockmarket crashes and bear markets SSC...
The Australian property bubble is the economic theory that the Australian property market has become or is becoming significantly overpriced and due for...
major American stockmarket crash that occurred in the autumn of 1929. It began in September, when share prices on the New York Stock Exchange (NYSE)...
metaphorically to refer to any large economic bubble when asset prices deviate from intrinsic values. Forward markets appeared in the Dutch Republic during the...
Global Information
