a Cristal clear meaning for Speculative business
This query is : Resolved
06 August 2009
A humble request to my freinds and taughters let me to know about the meaning of the speculation business..
Basically am some what away from the stock market so let me to know in detail what is speclative business?.......
Basically am some what away from the stock market so let me to know in detail what is speclative business?.......
06 August 2009
What Does Speculation Mean?
The process of selecting investments with higher risk in order to profit from an anticipated price movement.
Speculation should not be considered purely a form of gambling, as speculators do make an informed decision before choosing to acquire the additional risks. Additionally, speculation cannot be categorized as a traditional investment because the acquired risk is higher than average.
More sophisticated investors will also use a hedging strategy in combination with their speculative investment in order to limit potential losses.
The process of selecting investments with higher risk in order to profit from an anticipated price movement.
Speculation should not be considered purely a form of gambling, as speculators do make an informed decision before choosing to acquire the additional risks. Additionally, speculation cannot be categorized as a traditional investment because the acquired risk is higher than average.
More sophisticated investors will also use a hedging strategy in combination with their speculative investment in order to limit potential losses.
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