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A Stock market bubble is a type of economic bubble in which an exaggerated bull market where the value of stocks listed on a stock exchange rise dramatically upon a wave of public enthusiasm.
The dot-com boom of the late 1990s is one example. The biotech boom in the 1980s is another. Still other examples of stock market bubbles include Japanese stocks in the late-1980s, Nifty 50 stocks in the early 1970s, and Taiwanese stocks in 1987. A stock market bubble may set the stage for a later stock market crash, continuing our example, the Stock Market Crash of 2002.