TeachMeFinance.com - explain Speculative investment
Speculative investment -- or 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, but which
the buyer expects will in time pay interest, with a resultant
improvement in the price of the bond.
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