ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Definition: Speculation involves trading a financial instrument involving high risk, in expectation of significant returns. The motive is to take maximum advantage from fluctuations in the market. Description: Speculators are prevalent in the markets where price movements of securities are highly frequent and volatile.

Detailed explanation-2: -Leverage is a common strategy where a person or company uses borrowed money to invest and potentially grow an investment with the expectation of turning a profit.

Detailed explanation-3: -Risk-seeking investors will often construct a portfolio of high-risk investments that they believe have the potential to reap high gains.

Detailed explanation-4: -While the product names and descriptions can often change, examples of high-risk investments include: Cryptoassets (also known as cryptos) Mini-bonds (sometimes called high interest return bonds) Land banking. Contracts for Difference (CFDs)

Detailed explanation-5: -High-risk investments include currency trading, REITs, and initial public offerings (IPOs). There are other forms of high-risk investments such as venture capital investments and investing in cryptocurrency market.