Meaning of speculation in stock market

Author: ni404 Date of post: 20.06.2017

Speculative activity may have a destabilizing effect on share prices or exchange rates if speculators take a collective view that prices will rise or fall, accelerating and magnifying upward or downward price movements.

What is speculation? definition and meaning - utabumo.web.fc2.com

See ARBITRAGE , FORWARD MARKET , FLOATING EXCHANGE RATE SYSTEM , STAG , ACCOUNT PERIOD. Investment decisions based on the hope and expectation there will be a profit, but no firm evidence that this will be the case. As a general rule, the more speculative the venture, the greater the reward should be,commensurate with the risk taken. All content on this website, including dictionary, thesaurus, literature, geography, and other reference data is for informational purposes only. This information should not be considered complete, up to date, and is not intended to be used in place of a visit, consultation, or advice of a legal, medical, or any other professional.

Speculation financial definition of speculation http: Dictionary, Encyclopedia and Thesaurus - The Free Dictionary 9,,, visitors served.

A A A A Language: Register Log in Sign up with one click: Dictionary Thesaurus Medical Dictionary Legal Dictionary Financial Dictionary. Tools A A A A Language: Free content Linking Lookup box. Speculation Purchasing risky investments that present the possibility of large profits , but also pose a higher-than-average possibility of loss. A profitable strategy over the long term if undertaken by professionals who hedge their portfolios to control the amount of risk.

An investment with an exceptionally high risk. Speculators may invest in a start-up company or in a volatile commodity. These risks carry the possibility of very high returns. Speculators often trade actively and many have hedging strategies to reduce their risks. The taking of above-average risks to achieve above-average returns, generally during a relatively short period of time. Speculation involves buying something on the basis of its potential selling price rather than on the basis of its actual value.

Please log in or register to use bookmarks.

meaning of speculation in stock market

Write what you mean clearly and correctly. References in classic literature? I thought in a transitory way of the oddness of wells still existing, and then resumed the thread of my speculations. I have made money at the same time by speculations which have succeeded. Sir Thomas, after a moment's thought, recommended speculation.

Stock Market Prices Do Not Follow Random Walks

My eighth and last speculation has been in the Cat-Growing way. We began in this way with an excellent speculation in cattle--buying them for shillings and selling them for pounds. This news filled my mother's mind with foreboding doubts of the stability of her husband's grand speculation in America.

At length, after five years, when Mrs Nickleby had presented her husband with a couple of sons, and that embarassed gentleman, impressed with the necessity of making some provision for his family, was seriously revolving in his mind a little commercial speculation of insuring his life next quarter-day, and then falling from the top of the Monument by accident, there came, one morning, by the general post, a black-bordered letter to inform him how his uncle, Mr Ralph Nickleby, was dead, and had left him the bulk of his little property, amounting in all to five thousand pounds sterling.

Nor in any other of his writings is the attempt made to interweave life and speculation , or to connect politics with philosophy. I have not now leisure to enter upon so large a field of speculation , as here seems opening upon me; my design was to wipe off a doctrine that lay in my way; since, while Mr Jones was acting the most virtuous part imaginable in labouring to preserve his fellow-creatures from destruction, the devil, or some other evil spirit, one perhaps cloathed in human flesh, was hard at work to make him completely miserable in the ruin of his Sophia.

He was a prosperous man, with a good head for speculations , and his fortune was growing.

But such unproven speculations will scarcely be of interest to the general reader, to whom this story is addressed. We are wandering, however, into excursive speculations , when our intention was merely to give an idea of the nature of the wilderness which Mr.

Speculation - Wikipedia

More from Financial Dictionary. Mobile Apps Apple Android Kindle Windows Windows Phone. Free Tools For surfers: The page has not loaded completely and some content and functionality are corrupted. Please reload the page or if you are running ad blocking disable it.

Rating 4,6 stars - 556 reviews
inserted by FC2 system