Definition of Investment speculation

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TeachMeFinance.com - explain Investment speculation




historic definition...

Investment speculation -- Is when a person buys outright a stock or a bond, primarily to obtain the dividend or interest paid on it, but also with the intention of selling should there be a material advance in the price of the security. Likewise, the term applies when a person buys outright a stock that is not paying dividends, but which the buyer expects will in time pay dividends, with a resultant improvement in the price of the stock ; or the term applies when a person buys outright a bond that is not paying interest (as an income bond), but which the buyer expects will in time pay interest, with a resultant improvement in the price of the bond.



About the author

Mark McCracken

Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".


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