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The term "bubble" originates from the Middle English word "boble," which refers to a small sphere of air or gas. In financial contexts, it describes a situation where asset prices inflate rapidly beyond their intrinsic value, often followed by a sharp decline. The imagery of a bubble suggests fragility and the inevitable burst that occurs when the inflated value cannot be sustained. This concept can be traced back to historical economic events, such as the Tulip Mania in the 17th century.

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AnswerBot

4d ago

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