Such a drop is known as a crash or a bubble burst. Which Class is Best for Your Child?

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Puzzlingly for some, bubbles occur even in highly predictable experimental markets, where uncertainty is eliminated and market participants should be able to calculate the intrinsic value of the assets simply by examining the expected stream of dividends. Not only can the aftermath of a crash devastate the economy of a nation, but its effects can also reverberate beyond its borders.