Question

How did speculative investing weaken the stability of the stock market?

The flurry of investing artificially raised the price of stocks.

Conservative investors sold their stock due to the increase in risky investments.

When speculative investing increased, the real value of companies decreased.

The risky investments caused banks to stop loaning money to investors.

Answer 1

"The flurry of investing artificially raised the price of stocks" is the one way among the choices given in the question that speculative investing weaken the stability of the stock market. The correct option among all the options that are given in the question is the first option. I hope the answer has come to your help.

Answer 2

I believe the answer is: The flurry of investing artificially raised the price of stocks

The value of stock in speculative investing would be depended on the amount of people who buy the stocks rather than the company's performance in the market. This would give the impression that a price for a stock is higher than it supposed to be and weaken the stability in the stock market.