Answers » Categories » Stocks

What happens after a stock market bubble?



1 Answer

+1 
A stock market bubble is a self-perpetuating rapid rise in the share prices of stocks. It is caused by market participants who drive stock prices above their rational economic value.
When investors realize that share prices have risen far beyond the value of the asset, they suddenly race to withdraw their money. The supply will be exceed demand and stock prices will fall rapidly.

Answer this question

by Anonymous - Already have an account? Login now!
Your Name:  

Your Answer:  
Source(s): (optional)

Enter the text you see in the image below
What do you see?
Can't read the image? View a new one.
Your answer will appear after being approved.

Ask your own question