Speculation

Speculation has a special meaning when talking about money. The person who speculates is called a speculator. A speculator does not buy goods to own them, but t

Speculation
The Simple English Wiktionary has a definition for: speculation.

Speculation has a special meaning when talking about money. The person who speculates is called a speculator. A speculator does not buy goods to own them, but to sell them later. The reason is that he wants to make a profit from the change in price.

One tries to buy the goods when they are cheap and to sell them when they are expensive. There is a good chance to profit as long as the market price changes often in different directions.

Speculation includes the buying, holding, selling, and short-selling of stocks, bonds, commodities, currencies, collectibles, real estate, derivatives or any investment. It is the opposite of buying because one wants to use them for daily life or to get income from them (as dividends or interest).

Speculation is one of the biggest market roles in western financial markets. The others are hedging, long term investing and arbitrage. Speculators do not plan to keep an asset for a long time.[1]

References

Wikiquote has a collection of quotations related to: Speculation
  1. ↑ Macquarie Bank. Futures - Frequently asked questions Archived 2006-11-18 at the Wayback Machine.

Content Disclaimer

Informasi ini disarikan dari Wikipedia dan disajikan kembali untuk tujuan edukasi. Konten tersedia di bawah lisensi CC BY-SA 3.0. Kami tidak bertanggung jawab atas ketidakakuratan data yang bersumber dari kontribusi publik tersebut.

  1. The information displayed on this website is sourced in part or in whole from Wikipedia and has been adapted for the purpose of restating it. We strive to provide accurate and relevant information, however:
  2. There is no guarantee of absolute accuracy. Wikipedia is an open, collaborative project that can be edited by anyone, so information is subject to change.
  3. It is not intended to constitute professional advice. The content displayed is for informational and educational purposes only. For important decisions (e.g., medical, legal, or financial), please consult a professional.
  4. Content copyright. Wikipedia is licensed under the Creative Commons Attribution-ShareAlike License (CC BY-SA). This means that content may be reused with appropriate attribution and shared under a similar license.
  5. Responsible use. Any risk arising from the use of information from this website is entirely the responsibility of the user.