What is a bubble? | CNBC Explains?

A bubble is like when you blow up a balloon but keep blowing more and more air into it until it’s super big, maybe even too big to hold on to!

A bubble happens when something goes up in value really fast, just like how the balloon gets bigger as you blow more air into it. But instead of air, we're talking about things like money or stuff people want to buy.

For example, imagine all your friends start collecting shiny stickers, and suddenly everyone wants them, so people are willing to pay a lot for them. The price goes up really fast, like the balloon growing bigger and bigger. That’s a bubble!

Just like how a balloon might pop if it gets too big, a bubble can also pop, meaning the value drops quickly. If your friends get bored of stickers, they might stop buying them, and the price goes down fast.

So, a bubble is just something that grows really fast, and then might crash just as suddenly!