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 ?
These are speculative securities and as such involve a high degree of risk.
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.
In that case, the boss was playing the speculative securities game," Havard said.
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.
Lack of active trading compounds the risk in these highly speculative securities.
NASD charged that, from the spring of 2001 through the fall of 2002, Rich and eight Florida Discount brokers engaged in a variety of fraudulent and manipulative sales practices in soliciting customers to purchase shares of two highly speculative securities, Combined Professional Services, Inc.
Investors are advised, however, that Class C Certificates are highly speculative securities.
In both cases, NASD Regulation's complaints allege a series of fraudulent practices and the extensive use of abusive and high-pressure "boiler room" sales tactics to sell low-priced speculative securities to retail investors.