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Speculation per se has always been a part of stock market activity. People invest, hoping for a personal gain. The money they invest can be used by companies to expand operations, provide goods and services, hire people. This is normal economics.

Absence of regulation of the Stock Market leads to more and more risky investment, money managers manipulating prices to trick others into buying and selling unwisely so the managers themselves can get out at the right time with the maximum profit. That is bad for the economy.

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Q: How was speculation bad for the stock market?
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Related questions

What does market speculation mean?

A Stock market speculation means - Predicting the price of a market entity (A Stock for example) in future. If the speculation is positive, we buy. If our speculation is negative, we don't bye or sellbuy low sell high


What does stock speculator means?

A Stock market speculation means - Predicting the price of a market entity (A Stock for example) in future. If the speculation is positive, we buy. If our speculation is negative, we don't bye or sellbuy low sell high


What is buying on speculation?

the way you would buy on speculation was you would play the stock market


What is stock speculation?

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How did speculation and buting on margin help to cause the stock market crash in 1929?

easy because the stock market let a lot of people take other peoples money so that is how the stock market crashed. ):


Why was speculation in the stock market so popular in the 1920s?

Because it was believed to get people rich quick.


What was the new york institution in which continously rising prices and profits were fueled by speculation in the 1920s?

the stock market


What is speculated?

A message expressing an opinion on incomplete evidence.This can also mean economic speculation - like playing the stock market.


True or False Two causes of the Great Depression were tight monetary controls and under speculation in the stock market.?

False


Is the stock market vans good or bad?

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What is speculation buying?

Speculation buying is investing in short term investments and hoping to earn money on market fluctuations. It is different than buying stock in a company based on the company's value.


What describes stock speculation?

speculation is a gamble that the price of the stock will increase and an investor will make money.