A market bubble occurs when the prices of assets, such as stocks or real estate, rise rapidly to levels that are not supported by their fundamental value. This often happens due to excessive speculation, where investors buy assets expecting prices to keep increasing, rather than based on the actual performance or potential of the asset. Eventually, the bubble bursts when prices can no longer be sustained, leading to a sharp decline in value. This can result in significant financial losses for investors and can impact the broader economy. Historical examples of market bubbles include the Dot-com Bubble and the Housing Bubble.