What is speculation?

  • (noun): A hypothesis that has been formed by speculating or conjecturing (usually with little hard evidence).
    Synonyms: conjecture
    See also — Additional definitions below


Speculation is the practice of engaging in risky financial transactions in an attempt to profit from short or medium term fluctuations in the market value of a tradable good such as a financial instrument, rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, interest, or dividends. Many speculators pay little attention to the fundamental value of a security and instead focus purely on price movements. Speculation can in principle involve any tradable good or financial instrument. Speculators are particularly common in the markets for stocks, bonds, commodity futures, currencies, fine art, collectibles, real estate, and derivatives.

Read more about Speculation.

Some articles on speculation:

Mohsen Fayz Kashani - Theology - Four Major Groups of Muslims
... tradition they are a part of, but often fall into the trap of pure speculation ... Any kind of theological speculation and mystical speculation which is not traceable to the Qur'an and the Hadith is to be immediately discarded ...
Sayano–Shushenskaya Dam - Stability Concerns - Speculation
... This situation has led some of the local population to petition for controlled draining of the reservoir and deconstruction of the dam, since the consequences of the dam's failure, should it occur, would be catastrophic ... The resulting flood wave, which could be from 50 to 200 m high near the breach and moving at up to 200 km/h, would destroy the downstream Maynskaya HPP in a matter of minutes the nearby town of Sayanogorsk would be flooded in under half an hour, and the heavily populated area including Abakan and Minusinsk (altogether more than 200,000 people)—within 40 minutes to several hours ...
Egypt Air Flight 990 - Media Coverage - Western Media Speculation
... The speculation, in part, was based on leaks from an unnamed federal law enforcement official that the crew member in the co-pilot's seat was recorded as saying, "I made my decision now ... conference held on 19 November 1999, the NTSB's Jim Hall denounced such speculation and said that it had "done a disservice to the long-standing friendship between the people of the United States ... It is believed that the speculation arose from a mistranslation of an Egyptian Arabic phrase (Tawkalt ala Allah) meaning "I rely on God." ...
Scarlet Knights (comics) - Speculation
... The Scarlet Knight character has not been seen in any subsequent issues of the New Excalibur series, and with its cancellation Colin's fate may never be revealed. ...
Speculation - Books
... The Money Manias The Eras of Great Speculation in America, 1770-1970 ... Practical Speculation ...

More definitions of "speculation":

  • (noun): Continuous and profound contemplation or musing on a subject or series of subjects of a deep or abstruse nature.
    Synonyms: meditation
  • (noun): An investment that is very risky but could yield great profits.
    Example: "He knew the stock was a speculation when he bought it"
    Synonyms: venture

Famous quotes containing the word speculation:

    There was no speculation so promising, or at the same time so praisworthy, as the United Metropolitan Improved Hot Muffin and Crumpet Baking and Punctual Delivery Company.
    Charles Dickens (1812–1870)

    Many expressions in the New Testament come naturally to the lips of all Protestants, and it furnishes the most pregnant and practical texts. There is no harmless dreaming, no wise speculation in it, but everywhere a substratum of good sense. It never reflects, but it repents. There is no poetry in it, we may say, nothing regarded in the light of beauty merely, but moral truth is its object. All mortals are convicted by its conscience.
    Henry David Thoreau (1817–1862)

    When speculation has done its worst, two and two still make four.
    Samuel Johnson (1709–1784)