What does the term “speculation” mean as it relates to the stock market crash? Use your own words!
"Speculation" means….
It relates to the stock market crash because...
"Speculation" means making investments or trading in financial markets with the anticipation of making a profit based on expected price fluctuations. It involves taking high risks with the hope of earning significant returns.
It relates to the stock market crash because during periods of excessive speculation, investors may make investments based on unreliable information or unfounded rumors, rather than on the true value of the assets. This can lead to inflated stock prices or bubbles in the market. When these speculations collapse or are exposed as unfounded, it can result in a sudden and severe decline in stock prices, leading to a stock market crash.