How to Protect Yourself Against Speculative Bubble Bursts

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There are a lot of risks associated with speculative bubble bursts. Whether you're a trader or just happened to be in the market, it's important to be aware of the risks and protect yourself. Speculative bubbles are a common problem in the stock market. They're sudden, large bubbles that result from excessive speculation. Bubble bursts can cause prices to go up and down rapidly, making it difficult for investors to make money. To avoid bubble bursts, you need to be aware of them and know how to prevent them from happening. Here are some tips for protecting yourself from speculative bubble bursts:

When a company issues shares for sale, there's usually an offer price representing the amount of money a buyer will pay for all available shares. The company itself typically sets the offer price, but it can also be influenced by demand from potential buyers. If you purchase shares at more than the offer price, this could mean that the company has priced its shares too high, which is called overpricing the issue. This means that there won't be enough buyers to meet the offer price, so the company will quickly have trouble selling the shares. On the other hand, if you buy shares at less than the offer price, you may not get as many shares as expected, causing problems when it comes time to sell the shares later on. It's best to stick to the offer price and try not to overbuy. With greater fool theory, you can protect yourself by buying securities at a lower share price than what the security was issued at.

Dividends are payments made out of a corporation's profits to shareholders. When companies increase their dividends, they