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Boom

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A boom refers to a rising financial market. Another term for boom would be a bull market. During a stock market boom the majority of stocks rise in price and there is often a euphoric feeling about the market. A boom market does not necessarily refer to the stock market as a whole. Individual sectors of the market can have explosive boom periods of high, often unsustainable growth, such as the boom in the dot com sector during the late 1990s. The opposite of a boom period is known as a bust, and many sectors of the market traditionally have boom and bust cycles. Substantial profits can be made during a boom cycle of the market, but, similarly, fortunes can be lost when the boom ends and the prices of stocks fall.



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