Question

Explain stock speculation and the dangers it presented to the economy.

Answer 1

Answer:

Speculation is an economic act intended to provide a return in the form of a change in value, often in the short term. In everyday speech, however, one often refers to the purchase of a listed asset that one is prepared to sell quickly, but more generally, speculation means that one expects a change in the value of the security itself, rather than changed conditions for the underlying asset. However, the term has a somewhat negative connotation and may also refer to irresponsible ownership of properties or businesses.