Related Terms
Temporary condition caused by unjustified speculation in the price of a stock or commodity to a level that bears no relation to its real worth or potential. Bubbles inevitably fail (burst), wiping out the savings of unsophisticated or unsuspecting investors.

Use 'bubble' in a Sentence

Sometimes a stock may be about to bubble and if you can figure that out before you can make a lot of money.
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I was jealous of my friend because he knew how to blow a really big bubble and I did not know how to blow one at all.
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The bubble was due to burst soon as the effects would be felt for the long term so we prepared for it.
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Notable Quotable

Management has to Change with the World
"AOL was run at the peak of the Internet bubble by a coterie of relatively young managers who had, thanks to their efforts and in no small part to what turned out to be a fantasy-land economy and stock market, become fabulously wealthy. As wealth is often a strong contributor to self-esteem, it's safe to say this tight band of executives - busy in their spare time acquiring yachts and fractional jet ownership and third homes - held their particular views on business (and pretty much everything else) in very high regard. The problem was, the world was changing. Money was no longer falling from the sky from newly public dot-coms. Broadband Internet access was developing rapidly. Traditional advertisers were demanding accountability. And management whiffed, leaving AOL woefully unprepared for the changes taking place."
- Value Investor Insight

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