Encyclopedia > Stock market bubble

Article Content

Stock market bubble

A Stock market bubble is a type of economic bubble in which an exaggerated bull market where the value of stocks listed on a stock exchange rise dramatically upon a wave of public enthusiasm.

The dot-com boom of the late 1990s is one example. The biotech boom in the 1980s is another. Still other examples of stock market bubbles include Japanese stocks in the late-1980s, Nifty 50 stocks in the early 1970s, and Taiwanese stocks in 1987. A stock market bubble may set the stage for a later stock market crash, continuing our example, the Stock Market Crash of 2002.