Speculative motive

Speculative motive

A desire to hold cash in order to be poised to exploit any attractive investment opportunity requiring a cash expenditure that might arise.

Speculative Motive

A strategy in which one holds cash apart from any other investments just in case an attractive investment opportunity arises. This allows the investor to take advantage of the opportunity without closing any other positions.
References in periodicals archive ?
Portfolio motives include speculative motive and hedging motives, the former is the public to hold foreign currency in order to obtain speculative gains and assets; the latter is the public in order to keep the assets held by the purchasing power or value while holding foreign currency.
This is the Achilles heel of the DSGE model: in the DSGE model, households purchase capital goods only for the utility they provide, whereas in the economy people at times make purchases out of a speculative motive.
Kaynes argues that the speculative motive is the third reason for holding cash.
And, as housing prices rose rapidly in some areas of the country, a speculative motive for home buying took root and grew, encouraged by cheaper methods of financing.
The Indian investors have not shown much interest for the speculative motive which is otherwise called enterprise motive.
Keynes's Liquidity Preference Theory asserts that there are three motives for holding money--1) a transactions motive 2) a precautionary motive and 3) a speculative motive.
The speculative motive should not be affected by the introduction of the credit card.
This was directly or indirectly financed out of money held for the speculative motive.
institutions, this conversion of funds held for the speculative motive to funds held for the transactions motive would be accomplished by transferring funds from time deposits to checking deposits (and to a certain extent to currency and coin).
199] "the amount held to satisfy the speculative motive.
The strength of his speculative and transactions motives might undergo large fluctuations, causing funds to flow from deposits suitable for the transactions motive (checking accounts) to those suitable for the speculative motive (deposit accounts) without inducing any change in the total.