1. the extraordinary overvaluing of tulip bulbs that occurred in Holland in the 17th century. First introduced into Holland in the late 1500s, bulbs soon became highly prized and costly. Their value escalated over a period of 40 years until some of the rarer bulbs cost as much as a private home; such bulbs were no longer planted but instead displayed as an indication of the owner’s wealth. Some individuals willingly traded all of their possessions and savings to purchase bulbs, which they then hoped to resell for a much higher price as the market price escalated. The price of bulbs plummeted unexpectedly in 1637, causing financial ruin for many who had speculated in the bulb market. Also called tulipomania.

2. any investment craze that is marked by a rapid increase in the price of a commodity with relatively little value.