Momentum created by a misleading announcement and inside...

Momentum created by a misleading announcement and inside dealings distorted the share price. The rising price typically attracted more buyers into the market, and the increased demand, in turn, drove up the price higher still. Speculators added to this upward pressure by purchasing shares in the expectation they will be able to sell them later to other buyers at even higher prices. . When speculative fever could no longer be sustained, prices started to fall. thus causing investors to become worried about the falling price, they rushed like a heard of cattle, to sell their shares, adding to downward momentum.