Bubble, a collection of gas contained in liquid (which can be compact or a film around the bubble) and which takes the form of the surface tension of the liquid. A collection of small bubbles forms a foam. Bubbles are formed mainly in water that has been added to soap substances. The word "bubble" is metaphorically used in economics to describe an overvalued market, where there is a risk of its collapse.
A financial bubble or financial bubble is a situation where the price paid by persons for financial assets, such as shares or real estate, exceeds the real value of the asset in question, i.e. the value that the asset has if one looks at the income that the asset can realistically generate.
Financial bubbles arise from the fact that market players have unrealistic expectations of the income that the financial asset can generate, and are therefore prepared to pay an unrealistically high price of the asset. A financial bubble is characterized by rapidly rising prices for the financial asset, and the players initially make quick profits.
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