Personal Financial Management
Speculation refers to the act of purchasing assets, such as stocks or real estate, with the expectation that their prices will rise significantly in the future, allowing the investor to profit. This practice involves a higher degree of risk compared to traditional investing because it often relies on short-term price movements and market trends rather than the fundamental value of the asset. Speculators aim to capitalize on price volatility and market inefficiencies, but this approach can lead to substantial losses if the market does not behave as anticipated.
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