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speculation
Also known as financial speculation, speculative trading, business speculation, market speculation
thumb|1914 billboard criticizing speculation on land, which cites Henry George
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~15 min read
Article
19 sectionsContents
- History
- Speculation vs. investment
- Economic benefits
- Sustainable consumption level
- Market liquidity and efficiency
- Bearing risks
- Finding environmental and other risks
- Shorting
- Economic disadvantages
- Winner's curse
- Economic bubbles
- Government responses and regulation
- Regulations
- Proposals
- See also
- References
- Books
- Further reading
- External links
thumb|1914 billboard criticizing speculation on land, which cites Henry George
In finance, speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that that asset will become more valuable in a brief amount of time. The term can also refer to short sales, in which the speculator hopes for a decline in value. Speculation often has a pejorative connotation, as the activity is linked to bubbles, economic downturns, and financial crises.