Not all investors in the bubble companies believed in the feasibility of the schemes to which they subscribed. People were “too sensible” for that. They did believe, however, in the “greater fool” theory—that prices would rise, that buyers would be found, and that they would make money. Thus, most investors considered their actions the height of rationality, expecting that they could sell their shares at a premium in the “after market,” that is, the trading market in the shares after their initial issue.
