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bubble definition - finance
Markets that rise significantly above what rational expectations would dictate. Recently, the stock market run-up in the late 1990s that ended in 2000 is cited as an example of a stock market bubble. Historically there have been many bubbles, such as the South Sea Bubble and the Dutch Tulip Bubble. See also Tulipmania and South Sea Company Bubble.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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