- speculation
- An attempt to profit from commodity price changes through the purchase and/or sale of commodity futures. In the process, the speculator assumes the risk that the hedger is transferring, and provides liquidity in the market. The CENTER ONLINE Futures Glossary————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. Bloomberg Financial Dictionary————The process of selecting a high-risk investment to profit from an anticipated price movement. London Stock Exchange Glossary
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speculation spec‧u‧la‧tion [ˌspekjˈleɪʆn] noun• He made most of his money through property speculation.
• Inflation encourages consumption, borrowing and speculation.
speculation in• Low interest rates encourage speculation in the property market.
2. [uncountable] the act of guessing without knowing all the facts about something, or the guesses that you make:speculation that• The company's stock rose on Monday amid speculation that the computer maker may sell its microprocessor technology for $1.5 billion.
• Speculation mounted (= increased ) that the Bundesbank was set to raise its key interest rates.
• The group is now the focus of takeover speculation.
• A Treasury official dismissed the reports as “pure speculation”.
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Taking relatively high risks in financial markets in the hope of making large gains. Speculation involves trying to anticipate the future when making investments.* * *
speculation UK US /ˌspekjəˈleɪʃən/ noun [C or U]► the act of guessing possible answers to a question without having enough information to be certain: »Rumours that the CEO is retiring have been dismissed as pure speculation.
speculation about sth »The news led to speculation about possible further departures among the senior executive team.
speculation (that) »There is speculation that fourth quarter GDP growth could be revised downwards.
»The dollar rose amid speculation that central banks could buy the currency in collaboration.
fuel/prompt speculation »The chairman's speech fuelled speculation that a merger will happen later in the year.
on speculation »The stock shot up recently on speculation that a financing package was imminent.
► FINANCE the act of buying something hoping that its value will increase and then selling at this higher price in order to make a profit: speculation on/in sth »Evidence that the economy is accelerating could fuel further speculation in commodity markets.
»The share issue coincided with a huge rise in amateur stock market speculation.
Financial and business terms. 2012.