The glossary Bubble
A bubble is a particular market situation in which the price of assets are thought to be exaggeratedly high. As soap bubbles that tend to explode, speculative bubbles often end up in a market crash.
Bubbles are frequent on the financial markets. Here are a couple of examples: the Dutch Tulipmania (1634-1638); the South Sea Bubble (1720); The “dot-net bubble” in the 1990s.