Bubble theory

Definition:

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.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Performance shares

Shares of stock paid out to managers only if the company makes certain sales, earnings per share, or other similar criteria.

Subscribe to the Term of the Day via email Get the Term of the Day in your inbox!


Create your free portfolio