What Is Meant by a Speculative Bubble

question 65

Multiple Choice

What is meant by a speculative bubble?

• A) A pattern in past stock prices that,according to technical analysts,indicates higher future prices.
• B) A circumstance where everyone expects higher prices,which in turn causes higher prices.
• C) An occasional occurrence in program trading in which many investors simultaneously receive instructions to sell.
• D) A situation where poorly informed traders exacerbate any upturns or downturns in the market.

---

Definitions:

Financial Budgets

Plans that predict revenues, expenses, and cash flows over a specific period, helping businesses allocate resources and manage finances effectively.

Operating Budgets

Comprehensive financial plans used by an organization to forecast its expected revenues and expenses for a future period, guiding daily operations.

Budgeted Volume

The anticipated quantity or amount of sales, production, or activity planned for a future period.

Ending Inventory

The value of goods available for sale at the end of an accounting period.