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.

Step-by-step explanation:

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Answer 2

The main way in which speculative investing weakened the stability of the stock market is that "the flurry of investing artificially raised the price of stocks," since companies were being valued at prices far greater than their actual worth.