greater fool theory investment & finance definition
The theory that a questionable stock purchase or
investment can be sold at a later date. The person was a fool to make the
purchase, but the purchase can be sold to a greater fool.
See greater fool theory in Wall Street Words
The theory that no matter what price an investor pays for a security, someone else with less sense will be willing to buy it later. The greater fool theory reaches its height of popularity near the end of a bull market when speculation is high.
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