market bubble

Definition

A stock market phenomenon which occurs when the stocks in a particular sector are inflated out of proportion to their intrinsic value in response to exaggeratedly high expectations of resale value. The bubble is said to burst when stock prices suddenly go into a decline which is then compounded by panic selling of shares. Also called speculative bubble, price bubble, economic bubble.

Use market bubble in a sentence

If you are going to make some big investments you should try to make sure that it is not before a market bubble.

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The market bubble was some kind of phenomenon in the stock market and I thought it was a really cool thing to watch for.

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We had been cautious regarding the potential market bubble, as we had been burned badly when the last one burst some years back.

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