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How did speculative investing weaken the stability of the stock market

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

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User Gadolin
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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. 
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User Oleg Gryb
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