Speculative bubbles may arise in part because the value of the stock to a stockholder depends on the final sale price.

Question

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Speculative bubbles can occur when investors buy stocks at high prices hoping to sell them at even higher prices, often driven by expectations about future sale prices rather than the underlying value of the companies. This can lead to inflated prices that don't reflect the true value of the assets.

Speculative Bubbles May Arise in Part Because the Value of the Stock