USA HISTORY

THE ROARING 20S 1920 1929

1920S AMERICAN CULTURE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
Buying stock without knowing the risks, assuming it will just go up is known as ____
A
speculation
B
buying on margin
C
market capitalization
D
hammering the market
Explanation: 

Detailed explanation-1: -Speculation is the act of investing in opportunities with a high risk of loss, but also with the potential for significant financial gain. Like other investors, speculators invest with the hopes that they’ll be able to sell an asset for more than they bought it.

Detailed explanation-2: -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-3: -Speculative risk is a category of risk that, when undertaken, results in an uncertain degree of gain or loss. In particular, speculative risk is the possibility that an investment will not appreciate in value.

There is 1 question to complete.