Your browser is ancient! Upgrade to a different browser or install Google Chrome Frame to experience this site. An investment involving higher than normal risk in order to obtain a higher than normal return.
Speculation is the practice of engaging in risky financial transactions in an attempt to profit from short or medium term fluctuations in the market value of a tradable good such as a financial instrument, rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, interest, or dividends. Many speculators pay little attention to the fundamental value of a security and instead focus purely on price movements.
Speculation Definition & Example | Investing Answers
Speculation can in principle involve any tradable good or financial instrument. Speculators are particularly common in the markets for stocks, bonds, commodity futures, currencies, fine art, collectibles, real estate, and derivatives.
Speculators play one of four primary roles in financial markets, along with hedgers who engage in transactions to offset some other pre-existing risk, arbitrageurs who seek to profit from situations where fungible instruments trade at different prices in different market segments, and investors who seek profit through long-term ownership of an instrument's underlying attributes.
The role of speculators is to absorb excess risk that other participants do not want, and to provide liquidity in the marketplace by buying or selling when no participants from the other categories are available.
What does stock market speculation mean
Successful speculation entails collecting an adequate level of monetary compensation in return for providing immediate liquidity and assuming additional risk so that, over time, the inevitable losses are offset by larger profits. Creative work is play. It is free speculation using materials what does stock market speculation mean one's chosen form.
What does speculation mean?
So long as we have not identified a source, we must investigate in all directions and cannot take part in the sometimes wild speculation about the contamination source. It just ain't possible to explain some things. It's interesting to wonder on them and do some speculation, but the main thing is you have to accept it-take it for what it is, and get on with your growing.
Please enter your email address: Speculation noun the act of speculating Speculation noun examination by the eye; view Speculation noun mental view of anything in its various aspects and relations; contemplation; intellectual examination Speculation noun the act or process of reasoning a priori from premises given or assumed Speculation noun the act or practice of buying land, goods, shares, etc.
Speculation Speculation is the practice of engaging in risky financial transactions in an attempt to profit from short or medium term fluctuations in the market value of a tradable good such as a financial instrument, rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, interest, or dividends. British National Corpus Nouns Frequency Rank popularity for the word 'speculation' in Nouns Frequency: Numerology Chaldean Numerology The numerical value of speculation in Chaldean Numerology is: It is clearly in the realm of speculation.
MLA Chicago APA "speculation. Are we missing a good definition for speculation? Don't keep it to yourself Thanks for your vote! We truly appreciate your support. Company Home About News Press Awards Testimonials.
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