ECONOMICS (CBSE/UGC NET)

ECONOMICS

SAVING AND INVESTING

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Which of the following investment tools is considered to be a speculative investment?
A
Futures
B
Mutual Fund
C
Savings Bond
D
Certificate of Deposit
Explanation: 

Detailed explanation-1: -Speculative investments may occur in markets for real estate, stocks, currencies, antiques, fine art, commodity futures, and collectibles.

Detailed explanation-2: -Speculative stocks are high-risk, high-reward, and tend to appeal to short-term traders. Speculative stocks tend to be clustered into sectors or types: penny stocks, emerging market stocks, rare materials stocks, pharmaceutical stocks, etc.

Detailed explanation-3: -Sports betting, investing in stocks, and buying junk bonds are some examples of activities that involve speculative risk.

Detailed explanation-4: -Speculation is the act of making calculated investments in high-risk opportunities with the chance of a big payoff. A speculative investment refers to the investment itself. These investments carry a particularly high level of risk, but that also opens the door for a substantial profit.

Detailed explanation-5: -Bull Speculator. People who are bull speculators anticipate an increase in the asset’s price. Bear Speculator. Bears can be known to be the opposite of the first category of speculative individuals we discussed, the bulls. Lame Duck. Stag. 21-Dec-2022

There is 1 question to complete.