Tuesday, December 13, 2011

Stock market bubble

Stock market bubble-what is a stock market bubble?

Stock market bubble in the stock market is the stock price exceeds its intrinsic value of the investment phenomenon. In general, the stock on the stock market bubble has always been there. Now commonly referred to as the stock market bubble in the stock market is the stock price over the intrinsic value of the investment phenomenon. In a continuous process, the sharp rise in stock prices, the rise in prices will rise further gives rise to expectations, and thus attract a large number of bid-ask spread to only a means for profit investors and ultimately the stock price significantly from the its net worth.

The causes of the stock market bubble:

1 characteristics of the stock market itself is the root of the system

a lot of money into the stock market

3 The stock market system is incomplete

4 Stock market for trading fewer species

5 Institutional investors play a role in making