Speculative stock

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Speculative stock

Very risky stock.

Speculative Stock

A stock in a new, small, or otherwise obscure company with a high likelihood of failure but a small possibility of experiencing an extraordinary return. Many IPOs, especially in small companies, are considered speculative stocks. By definition, speculative stocks carry a great deal of risk. See also: Penny Stock.
References in periodicals archive ?
Risk averse investors may prefer to limit their exposures to investment grade instruments, while risk seekers may aim for high yielding speculative securities.
Mitchell and Wilmarth, both professors of law at George Washington University, have also prepared a substantial introduction that places the crisis in the perspective of a gradual transition in the economy--from one resting on productivity toward one that rested on financial derivatives, speculative securities, and an artificial housing boom.
However, when expectations for steadily appreciating speculative securities dies down, we may very well see a wave of profit taking that gathers more momentum than the advance that brought us to our current highs.
Not only are such free-lunch meetings disguised sales presentation but some also promote financial products deemed by regulators to be unsuitable for many seniors, including deferred VAs, real-estate investment trusts or speculative securities, Cox charged.
In that case, the boss was playing the speculative securities game," Havard said.
When many investors seem to be betting on the short-term direction of speculative securities, this is a good time to step back and put the current turmoil in perspective and apply the lessons learned from many years of studying the financial markets.
TOKYO, March 30 Kyodo A new bank inspectors' manual will bar banks from extending loans to finance speculative securities and land deals, the chief causes of mammoth loans that went sour after the early 1990s burst of the asset-inflated ''bubble'' economy, according to a copy of the final version of the draft manual.