THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Stock Market Speculation is ____
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Borrowing more money than you can afford to pay back
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Buying stock with the hope that the worth of the stock will rise over time
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Buying stock that is high and hoping the value will fall
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Selling stock you already own without paying the full amount.
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Explanation:
Detailed explanation-1: -In finance, speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable shortly. It can also refer to short sales in which the speculator hopes for a decline in value.
Detailed explanation-2: -Speculation traders provide market liquidity and can narrow the difference between the bid price and the asking price for an asset in the market. Speculative trading not only keeps the rampant bullishness in check but also prevents the risk of the formation of asset price bubbles through betting on successful outcomes.
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