Question

A bubble occurs when A. a company reports profits that are significantly above or below the expectations of financial analysts. B. the price of a stock is above its fundamental value. C. the futures price is greater than the price of the underlying asset. D. inside information is used to make profits from trading a​ company's stock.

Answer 1

The answer is B. the price of a stock is above its fundamental value.

Step-by-step explanation:

A stock market bubble is a type of economic bubble taking place in stock markets when market participants drive stock prices above their value in relation to some system of stock valuation.