USA HISTORY

THE ROARING 20S 1920 1929

1920S AMERICAN CULTURE

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
This is making a very risky investment in the stock market, in hopes of earning a large profit
A
Speculation
B
Buying on Margin
C
Bank Run
D
Bull Stock
Explanation: 

Detailed explanation-1: -With respect to the stock market, any high-risk trades that you undertake in the hopes of earning a huge profit from such a trade is known as speculative trading.

Detailed explanation-2: -All investments carry some degree of risk. Stocks, bonds, mutual funds and exchange-traded funds can lose value-even their entire value-if market conditions sour. Even conservative, insured investments, such as certificates of deposit (CDs) issued by a bank or credit union, come with inflation risk.

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: -What is Speculation? In the world of finance, speculation, or speculative trading, refers to the act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value.

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