MANAGEMENT

Detailed explanation-1: -Investing in the stock market is an example of a speculative risk. One can only speculate on whether the investment will produce a profit or a loss.

Detailed explanation-2: -Examples of Speculative Risk Most financial investments, such as the purchase of stock, involve speculative risk. It is possible for the share value to go up, resulting in a gain, or go down, resulting in a loss.

Detailed explanation-3: -Speculation is common among investors who trade penny stocks and over-the-counter (OTC) investments. Speculation should be limited to ensure that long-term financial goals like retirement are not impacted.

Detailed explanation-4: -Gambling and investing in the stock market are two examples of speculative risks. Each offers a chance to make money, lose money or walk away even.

Detailed explanation-5: -Almost all financial investment activities are examples of speculative risk, because such ventures ultimately result in an unknown amount of success or failure. Speculative risk can be contracted with pure risk, a category of risk in which the only possible outcome is loss.