Here is the synopsis of our sample research paper on Asset Pricing Bubbles. Have the paper e-mailed to you 24/7/365.
Essay / Research Paper Abstract
A 10 page paper discussing historical bubbles including the Dutch bulb craze, the South Sea Company in 1711 and South Florida real estate in the 1920s. The paper answers several questions regarding asset valuation, particularly in association with the fallout of the tech sector beginning in March 2000. Bibliography lists 15 sources.
Page Count:
10 pages (~225 words per page)
File: CC6_KSeconBub.rtf
Buy This Term Paper »
Unformatted sample text from the term paper:
facts" is one that could - should - describe the criteria with which investors approach their investment activities. Comparable to getting carried away at an auction, there have been
times in history in which investors unwisely have let their emotions get the best of their intellect. The histories of some of the famous "bubbles" of the past illustrate
the point, including the story of the fallout of the technology sector beginning in 2000. 1. Famous Bubbles A bubble occurs "when
the price of an asset rises far higher than can be explained by fundamentals, such as the income likely to derive from holding the asset" (Economics A-Z, 2004). Or,
as another source phrases it, "A bubble is a type of investing phenomenon that demonstrates the frailty of some facets of human emotion" (What are Crashes and Bubbles?, 2004).
It occurs "when investors put so much demand on a stock that they drive the price beyond any accurate or rational reflection of its actual worth" (What are Crashes and
Bubbles?, 2004). Though the value of a stock should be based on the value of the underlying company, stocks caught in a bubble begin trading for high above its
fair market value. One author states that economists are not in agreement with what causes bubbles; Federal Reserve Chairman Alan Greenspan (1999) notes
that neither can economists predict when one will occur. Whether caused by "irrational crowd behaviour (perhaps coupled with exploitation of the gullible masses by some savvy speculators)" (Economics A-Z,
2004), or caused by the actions of uninformed investors unwilling or unable to make valuation judgments as to the relative worth of a stock or item, the result is always
...