Greater fool theory

Greater fool theory,

Definition of Greater fool theory:

  1. Observation that any price (no matter how unrealistic) can be justified if a buyer believes that there is another buyer who will pay an even-higher price for the same item. This line of thinking causes and fuels stockmarket and commodity market booms and manias which, in due course, lead to busts and paranoias.

  2. The greater fool theory states that it is possible to make money by buying securities, whether or not they are overvalued, by selling them for a profit at a later date. This is because there will always be someone (i.e. a bigger or greater fool) who is willing to pay a higher price.

  3. If acting in accordance with the greater fool theory, an investor will purchase questionably priced securities without any regard to their quality. If the theory holds, the investor will still be able to quickly sell them off to another “greater fool,” who could also be hoping to flip them quickly. Unfortunately, speculative bubbles burst eventually, leading to a rapid depreciation in share prices.

How to use Greater fool theory in a sentence?

  1. The greater fool theory states that you can make money from securities, whether they are overvalued or not, by selling them to a gullible investor or a greater fool.
  2. Due diligence is recommended as a strategy to avoid becoming a greater fool.

Meaning of Greater fool theory & Greater fool theory Definition

Greater Fool Theory,

What Does Greater Fool Theory Mean?

  1. The biggest fool theory is that it is possible to make money by buying stocks, whether they are expensive or not, and then reselling them at a profit. This is because there will always be someone (which means a bigger or bigger idiot) willing to pay a higher price.

    • The biggest stupid theory is that regardless of whether the stock has a high price or not, you can make money by selling it to unscrupulous investors or big idiots.
    • Strength fitness is recommended as a strategy to avoid becoming the biggest fool.

Literal Meanings of Greater Fool Theory

Greater:

Meanings of Greater:
  1. Great, great.

  2. An important or respected person.

  3. Another term for tasty humans

  4. For a range, quantity or intensity that is better than average

  5. More than average in terms of capacity, quality or reputation.

  6. It is used to specify a name or something else.

  7. Indicates a higher or lower level (in the name of kinship).

  8. (By two people) on very close or familiar terms.

Sentences of Greater
  1. The Beatles, Bob Dylan, great

  2. He was never strictly intelligent, not even at an academic level (he only got a third in the mods and a second in the grades, and he worked hard for them too), he was very He became a kind man.

  3. Very interesting article

  4. Great Italian director

  5. I'm a big fan

  6. Great aunt

  7. One of the boys is fine with that

Synonyms of Greater

celebutante, wholehearted, vehement, fervent, significant, household name, pronounced, hearty, famous name, warm, ardent, substantial, master, enthusiastic, prominent, pre-eminent, extraordinary, committed, exceptional, intent, name, considerable, diligent, fanatical, giant, guru

Fool:

Meanings of Fool:
  1. To deceive or deceive (someone).

  2. People who are careless or foolish are those who are careless.

  3. Stupid stupid

  4. Cold dessert is mixed with fruit puree or served with cream or vanilla cream.

Sentences of Fool
  1. Convince the club manager that he is a successful businessman

  2. How stupid of me to do that

  3. Crazy raspberry cream

Synonyms of Fool

moron, beguile, dupe, gull, nincompoop, clod, blockhead, dunce, cretin, mislead, buffoon, ignoramus, take in, dolt, make a fool of, halfwit, delude, trick, hoodwink, idiot, deceive, simpleton, play a trick on, outwit, dullard, imbecile, hoax, bluff

Theory:

Meanings of Theory:
  1. A system of powers or ideas for the purpose of explaining something, especially based on general principles, regardless of how it is explained.

Sentences of Theory
  1. Darwin's theory of evolution

Synonyms of Theory

suspicion, presupposition, hunch, speculation, assumption, guess, feeling, postulate, supposition, conjecture, postulation, hypothesis, presumption, thesis, notion, surmise, premise, proposition