speculation

(redirected from speculated)
Also found in: Dictionary, Thesaurus, Legal, Idioms, Encyclopedia.

Speculation

Purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss. A profitable strategy over the long term if undertaken by professionals who hedge their portfolios to control the amount of risk.

Speculation

An investment with an exceptionally high risk. Speculators may invest in a start-up company or in a volatile commodity. These risks carry the possibility of very high returns. Speculators often trade actively and many have hedging strategies to reduce their risks. See also: Hedge fund.

speculation

The taking of above-average risks to achieve above-average returns, generally during a relatively short period of time. Speculation involves buying something on the basis of its potential selling price rather than on the basis of its actual value.

speculation

the buying and selling of COMMODITIES (tea, tin etc.), FINANCIAL SECURITIES (shares etc.) and FOREIGN CURRENCIES whose market prices are characterized by substantial fluctuations over time, by individuals and firms (speculators) in the hope of making windfall profits. For example, in the STOCK MARKET and FOREIGN EXCHANGE MARKET, a speculator may take a ‘bullish’ view that a share price or the exchange rate of a currency will rise and may gamble on this possibility by buying that share or currency, using either his or her own money or short-term credits, and hoping to resell it at a higher price after a few days or weeks, in order to make a capital gain on the difference between the two prices. On the other hand, the speculator may take a ‘bearish’ view that a share price or currency value will fall and may gamble on this possibility by selling the share or currency (even though he or she does not currently own any), using the proceeds from this sale to buy at a lower price the shares or currency he or she has promised to deliver a week or two later.

Speculative activity may have a destabilizing effect on share prices or exchange rates if speculators take a collective view that prices will rise or fall, accelerating and magnifying upward or downward price movements. Because of the disruptive effects of speculation on international trade, countries' central banks often intervene in the foreign exchange markets to maintain ‘orderly’ exchange rates. See ARBITRAGE, FORWARD MARKET, FLOATING EXCHANGE RATE SYSTEM, STAG, ACCOUNT PERIOD.

speculation

the purchase or sale of ASSETS, real or financial, to achieve a CAPITAL GAIN.

See ARBITRAGE, SPECULATIVE DEMAND FOR MONEY, SPECULATOR.

speculation

Investment decisions based on the hope and expectation there will be a profit, but no firm evidence that this will be the case. As a general rule, the more speculative the venture, the greater the reward should be,commensurate with the risk taken.

References in periodicals archive ?
It will operate within the company's Disney Interactive Media Group (DIMG).Country: Finland, Sector: Leisure/Arts, IT/Online ServicesTarget: Rocket Pack LtdBuyer: The Walt Disney CompanyDeal size in USD: 10m-20mType: Corporate acquisitionStatus: ClosedComment: The deal size is speculated.
It was speculated that the reason for delay in the launch of iPhone was the manufacturer's decision to shift to bigger screen sizes as compared to the current 4-inch display.
Because these South Pacific chains, as their Hawaiian counterparts do, lie on the Pacific tectonic plate, many scientists have speculated that underlying hot spots created all these seamounts.
The researchers speculated that the RNA produced by the gene is a universal regulator of animal development, perhaps an important controller of a caterpillar's metamorphosis into a butterfly and a tadpole's into a frog.
Researchers had once speculated that such an oddball noise might be a weapon.
Providing dinner might give a male some kind of edge in the contest for egg share, Andrade speculated. So, she offered laboratory females two consecutive partners and compared their success.
Some of them have speculated that an embryo derives its first knowledge of left and right from an asymmetrically shaped molecule that lines up along the embryo's other two axes, the head-tail axis and the back-front axis.
Researchers have speculated that cowbirds get their head start by prolonging the incubation needed by eggs of smaller birds.
Based on their growing knowledge of the import story, scientists speculated that Rev and other proteins bearing different export signals, sometimes along with bound RNA strands, could leave a nucleus only if they were joined to specialized export molecules.