If a share of stock is correctly valued today, a ________ in the stock market is when you purchase a stock because you expect other people will be willing to pay more for the stock in the future.
A) balloon
B) hiccup
C) bubble
D) floatation

Question

Quizplus · Accepted Answer

A bubble is a period of increased speculation in the stock market, where investors buy stocks only because they expect to sell them to someone else at a higher price, rather than because they believe the stocks are actually worth that much. This causes the stock prices to become overinflated, creating a "bubble" that eventually bursts when investors lose confidence and start selling.

If a Share of Stock Is Correctly Valued Today, a ________