SPECULATIVE BUBBLES – APPEARANCE AND GROWTH

BAKO Elena Dana, Babes-Bolyai University

SECHEL Ioana – Cristina, Babes-Bolyai University

Abstract:
The global financial market is constantly changing, and this is why research topics in this area are endless. The purpose of this article is to highlight the premises of appearance and expansion of speculative bubbles from the perspective of large volumes of financial transactions done far from the fair price. Many researchers believe that stock market indexes through their evolution over time have the ability to anticipate crises or the moments when the speculative bubbles appear. In this article we show that this is not always true, and we state that every time stock market indexes will be adjusted to the real economy.

Keywords: Speculative Bubble, Stock Exchange Markets, Stock Market Indexes.

JEL Classification: G01

Volume: 65, Issue: 3

Pages: 182 - 191

Publication date: , 2013

Download the article: http://economice.ulbsibiu.ro/revista.economica/archive/65315bako&sechel.pdf

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