Bubble theory

Bubble theory

A theory under which security prices sometimes move wildly above their true values, or the price falls sharply until the "bubble bursts". It is also possible for a bubble to deflate gradually.

Bubble Theory

A theory of investing stating that prices for securities, especially stocks, occasionally rise far above their actual value. This trend continues until investors realize just how far prices have risen, usually, but not always, resulting in a sharp decline.

A famous example of a bubble is the dot-com bubble of the 1990s. Dot-com companies were hugely popular investments at the time, with IPOs of hundreds of dollars per share, even if a company had never produced a profit, and, in some cases, had never earned any revenue. This came from the theory that Internet companies needed to expand their customer bases as much as possible and thus corner the largest possible market share, even if this meant massive losses. NASDAQ, on which many dot-coms traded, rose to record highs. This continued until 2000, when the bubble burst and NASDAQ quickly lost more than half of its value.
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Princeton Astrophysicist, Professor Richard Gott, discusses his latest research on dark energy, multi-verse bubble theory and Mars colonization on Divine Imagination radio program.
vvBartlett's bubble theory BETTING shops and their 'proliferation' have been back in the news recently, but it would seem the same market forces that have been causing the seemingly daily closures of other retailers may do to bookmakers what campaigners have failed to manage so far.
Those who fanatically subscribed to the simplistic bubble theory are in for a surprise of their life.
He has appeared on television in a show titled "How William Shatner Changed the World" in which his warp bubble theory was discussed.
Think of this bubble theory as watching a pot of water start to boil.
If the appellant's bubble theory was correct, he said, then someone could drive through at 100 mph and be immune from prosecution.
A couple years ago economists at UCLA's Anderson Forecast floated their housing price bubble theory, which has hovered over the residential real estate market ever since.
Many critics of the real estate bubble theory consider San Diego's slowdown not a foreboding harbinger of residential real estate doom but a natural and healthy check on a rate of appreciation that is unsustainable.
Nima Nattagh, an analyst at FNC, which supplies real estate market information to the mortgage industry, doesn't subscribe to the bubble theory.