Study shows how seriously investors took the possibility of a democratic revolution during Egypt’s Arab Spring

Day after day in early 2011, massive crowds gathered in Cairo’s Tahrir Square, calling for the ouster of Egyptian President Hosni Mubarak. Away from the square, the protests had another effect, as a study co-authored by an MIT professor shows. The demonstrations lowered the stock market valuations of politically connected firms—and showed how much people thought a full democratic revolution was possible.