How did over speculation affect the stock market in the 1930's?

Over-speculation in the Stock Market during the 1920s created an unsustainable economic bubble, leading to inflated stock prices that did not reflect the actual value of companies. When the bubble burst in 1929, it triggered the stock market crash, resulting in massive financial losses and widespread panic among investors. This loss of confidence contributed to the Great Depression, as businesses struggled to secure funding and consumers reduced spending. The ensuing economic downturn highlighted the dangers of unchecked speculation in financial markets.