DO NOT POST ON WEBSITE: Why do bubbles and bursts occur in financial markets? In discussing this issue, you need to focus on the rationality of investors, the availability of information to different...

Why do bubbles and bursts occur in financial markets? In discussing this issue, you need to focus on the rationality of investors, the availability of information to different categories of investors, and the use of historical data in financial decision making
Answer:
There is no single theory that explains why explains why bubbles occur in the financing markets. One theory is when economy gains momentum; companies have high earnings paid higher individual salaries. Instead of saving...