The Best Definition for a Bubble in a Stock Market

question 266

Multiple Choice

The best definition for a bubble in a stock market is?

• A)a period of rapidly rising stock prices after a sharp fall in stock prices
• B)sustained and steady growth in stock prices in line with economic growth
• C)a rapid increase stock prices to levels inconsistent with the profitability of firms
• D)quickly rising stock prices caused by rapid growth in the population
• E)a rapid drop in stock prices once new information about the market is revealed

---

Definitions:

Pragmatic View

An approach stressing practicality and effectiveness, focusing on results and solutions that work in specific situations.

Manipulated

In a research context, refers to the controlled alteration of variables to assess effects on certain outcomes.

Metaphor

A figure of speech where a word or phrase is applied to an object or action to which it is not literally applicable, in order to suggest a resemblance.