Skim the text and match the pictures A-G to the paragraphs 1-7.

Date: 2015-10-07; view: 509.

Five Steps of a Bubble

TEXT 3

Work either individually or in pairs / groups. Answer the following questions. Prepare a report, if necessary.

What are the ways of increasing shareholders' equity? Explain the opportunities and risks. Give examples.

June 02, 2010

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Pic. B

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Pic. F

Pic. G

§ 1. The term "bubble," in the financial context, generally refers to a situation in which the price of an asset exceeds its fundamental value by a large margin. During a bubble, prices for a financial asset or asset class are highly inflated, bearing little relation to the intrinsic value of the asset. The terms "asset price bubble," "financial bubble" or "speculative bubble" are interchangeable, and are often shortened simply to "bubble."