Whenever a set of stock prices go unnaturally high and subsequently crash down, the market experiences what we call a(n):
A)financial meltdown.
B)irrational behavior.
C)stock market bubble.
D)none of these.

Question

Quizplus · Accepted Answer

When stock prices go unnaturally high due to over-enthusiasm of investors and then subsequently come down, it is deemed a stock market bubble. The bubble bursts when people start to doubt the real value of a company and start dumping their shares, leading to a crash in stock prices.

Whenever a Set of Stock Prices Go Unnaturally High and Subsequently