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.

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Definitions:

Sarbanes-Oxley Act

The Sarbanes-Oxley Act is a United States federal law enacted in 2002 to protect investors from fraudulent financial reporting by corporations.

Computer Crime

Refers to criminal activity where a computer or network is the source, tool, target, or place of a crime.

Mens Rea

A legal term referring to the criminal intent or state of mind of an individual committing a crime, essentially the mental aspect of a crime.

Fourth Amendment

Part of the U.S. Constitution that protects citizens against unreasonable searches and seizures, requiring any warrant to be judicially sanctioned and supported by probable cause.