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bubble. 1  a nearly spherical body of gas contained in a liquid. 2  a small globule of gas in a thin liquid envelope. 3  a globule of air or gas, or a globular vacuum, contained in a solid. 4  anything that lacks firmness, substance, or permanence; an illusion or delusion.
What is a 'Bubble'. A bubble is an economic cycle characterized by rapid escalation of asset prices followed by a contraction. It is created by a surge in asset prices unwarranted by the fundamentals of the asset and driven by exuberant market behavior.