Froth

Froth
Market conditions preceding an actual market bubble where asset prices become detached from their underlying intrinsic values as demand for those assets drives their prices to unsustainable levels. Market froth marks the beginning of unsustainable rates of asset price inflation.

An interesting example of a frothy market was Holland's tulip bulb market in the early 1600s. The market for tulip bulbs went through a huge run up and crash.

People mortgaged whatever they could to raise cash to trade tulip bulbs. In 1633, a farmhouse changed hands for three tulip bulbs. The market top came in the winter of 1636-37 when a single tulip bulb, left along with 70 other tulip bulbs as seven orphans' only inheritance, sold for 5,200 guilders. Soon after the top, tulip bulbs traded for 1/100 of what they had two weeks earlier.


Investment dictionary. . 2012.

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  • Froth — Froth, n. [OE. frothe, Icel. fro[eth]a; akin to Dan. fraade, Sw. fradga, AS. [=a]freo[eth]an to froth.] [1913 Webster] 1. The bubbles caused in fluids or liquors by fermentation or agitation; spume; foam; esp., a spume of saliva caused by disease …   The Collaborative International Dictionary of English

  • froth´i|ly — froth|y «FRTH ee, FROTH », adjective, froth|i|er froth|i|est. 1. of, like, or having froth; foamy: »frothy soapsuds, frothy ruffles. 2. Figurative. light and trifling; shallow; …   Useful english dictionary

  • froth|y — «FRTH ee, FROTH », adjective, froth|i|er froth|i|est. 1. of, like, or having froth; foamy: »frothy soapsuds, frothy ruffles. 2. Figurative. light and trifling; shallow; …   Useful english dictionary

  • Froth — is foam consisting of bubbles in a liquid.One common form of froth is milk froth deliberately created as part of a drink. Many Italian style coffees are made using a combination of espresso coffee, steamed milk and frothed milk. Most espresso… …   Wikipedia

  • froth — [frôth, fräth; ] for v., also [ frôth, fräth] n. [ME frothe < ON frotha, akin to OE (a) freothan, to froth up < IE * preu th, a snorting, slavering < base * per , to sprinkle, scatter > Gr prēmainein, to blow hard] 1. a whitish mass… …   English World dictionary

  • Froth — Froth, v. t. [imp. & p. p. {Frothed}; p. pr. & vb. n.. {Frothing}.] 1. To cause to foam. [1913 Webster] 2. To spit, vent, or eject, as froth. [1913 Webster] He . . . froths treason at his mouth. Dryden. [1913 Webster] Is your spleen frothed out,… …   The Collaborative International Dictionary of English

  • froth — froth·er; froth; froth·i·ly; froth·i·ness; …   English syllables

  • froth — (n.) c.1300, from an unrecorded O.E. word, or else from O.N. froða froth, from P.Gmc. *freuth . O.E. had afreoðan to froth, from the same root. The modern derived verb is from late 14c. Related: Frothed; frothing …   Etymology dictionary

  • Froth — Froth, v. i. To throw up or out spume, foam, or bubbles; to foam; as beer froths; a horse froths. [1913 Webster] …   The Collaborative International Dictionary of English

  • froth — frȯth n, pl froths frȯths, frȯthz a foamy slaver sometimes accompanying disease or exhaustion froth frȯth, frȯth vt to foam at the mouth …   Medical dictionary

  • froth — ► NOUN 1) a mass of small bubbles in liquid caused by agitation, fermentation, or salivating. 2) impure matter that rises to the surface of liquid. 3) worthless or insubstantial talk, ideas, or activities. ► VERB ▪ form, produce, or contain froth …   English terms dictionary

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