Encyclopedia of Investment Terminology

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Tulip Mania

Tulip mania, also known as Tulipomania, occurred in the seventeenth century where contract prices offered for tulip bulbs increased substantially. As the tulip became popular in the Netherlands, massive increases in bulb contracts occurred. In 1636 the values of tulip contracts went up by five times their original value but they fell suddenly at the start of 1637. It is argued that desires to profit off of contract value increases and activity in the Thirty Years War helped to add to the bubble.

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