USA HISTORY

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.

Detailed explanation-2: -A stock trader is a person who attempts to profit from the purchase and sale of securities such as stock shares. Stock traders can be professionals trading on behalf of a financial company or individuals trading on behalf of themselves. Stock traders participate in the financial markets in various ways.

Detailed explanation-3: -Who are the Speculators? Speculators are people who engage in speculative investments. In other words, a speculator is a person who buys assets, financial instruments, commodities, or currencies with the hope of selling them at a profit on a future date.

Detailed explanation-4: -Investors purchase stocks in companies they think will go up in value. If that happens, the company’s stock increases in value as well. The stock can then be sold for a profit. When you own stock in a company, you are called a shareholder because you share in the company’s profits.

Detailed explanation-5: -Speculative trading is the act of trading stocks in anticipation of their value going up. If the expected increase in value is accurately predicted, the trader will make a profit. If not, the purchase or sale may result in loss, to some extent.