Abstract
Bubble is one of the most frequently used and colorful terms in economics. However, it is rarely explained in detail, most economists more or less agree on what it means. In the following paper we are going to show that the widely accepted explanation of bubble contains controversial, tautological reasoning. It is challenged from the theoretical side, but practical consequences will also be mentioned. Two questions hiding in the title above will be answered. First is to give a conceptual framework for analyzing stock prices to decide whether we can label as a bubble particular movements, upward and downward tendencies in stock prices. Second, with a coherent and consistent definition we will be able to answer the question whether there was a bubble in the Hungarian stock market between 1995-2002.
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