Speculation is the gamble that the price of a stock will increase based on projections provided by the company or economists. The issue with speculation is often projections are incorrect or inflated and if anything were occur to the economy, the stock will quickly decline creating a crash. The 1920s speculation was especially dangerous as people bought stock on credit in hopes of making a profit and paying back the creditor. When the crash occurred not only did individuals lose money but so did creditors.
