How did speculative investing weaken the stability of the stock market

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asked Nov 8, 2016 58.0k views

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Oleg Gryb · Answer 1 · 2016-11-14T21:32:40+0000

The main way in which speculative investing weakened the stability of the stock market was that it it led to high overvaluation of a company's worth, meaning that people began to divest quickly, leading to a run on the banks.

How did speculative investing weaken the stability of the stock market

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