Question

What was the danger of stock speculation?

Answer 1

The correct answer is: C) Stock prices would decline and investors would lose money.

Stock speculation consists of investing on a stock before the rest of the market does and thus having the opportunity to generate greater returns than what one could have with non-speculative stock but at a much higher risk, turning into something like gambling. This is why it is quite dangerous to engage in stock speculation.

Answer 2

It will be C. Stock prices would decline and investors would lose money.