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Finance Dictionary and Glossary of Investment Terms
Speculation
Definition 1.
Purchasing risky investments that present the possibility of large profits, but also pose a higher-than-average possibility of loss. A profitable strategy over the long term if undertaken by professionals who hedge their portfolios to control the amount of risk.
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Definition 2.
Taking large risks, especially with respect to trying to predict the future; gambling, in the hopes of making quick, large gains.
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Definition 3.
The process of selecting investments with higher risk in order to profit from an anticipated price movement.
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