ShmoopTube
Where Monty Python meets your 10th grade teacher.
Search Thousands of Shmoop Videos
Charts Videos 93 videos
What is Devaluation? The process by which a nation deliberately lowers the value of its currency relative to other international currencies is call...
A secular trend is something that changes over time, but is not necessarily an element in a repeated, continuing cycle.
What is the Advance Decline Ratio? The advance decline ratio is used to determine how the market performed on a given day. It does this by comparin...
Finance: What is speculation? 6 Views
Share It!
Description:
What is speculation? Speculation refers to a high risk, high reward scenario in investing. When an investor engages in a speculation, they take on a huge risk (they could potentially lose all their money), expecting that they will actually reap a huge reward.
- Social Studies / Finance
- Finance / Financial Responsibility
- College and Career / Personal Finance
- Life Skills / Personal Finance
- Finance / Finance Definitions
- Life Skills / Finance Definitions
- Finance / Personal Finance
- Courses / Finance Concepts
- Subjects / Finance and Economics
- Finance and Economics / Terms and Concepts
- Terms and Concepts / Charts
- Terms and Concepts / Derivatives
- Terms and Concepts / Investing
- Terms and Concepts / Real Estate
- Terms and Concepts / Stocks
- Terms and Concepts / Trading
Transcript
- 00:00
Finance a la shmoop what is speculation? wild bets crazy dreams invested upon the [Man placing bet and woman dreaming about money]
- 00:11
state lottery betting the ranch on red
- 00:15
drilling randomly on street corners hoping to find oil you don't want to do
- 00:20
that all right that's speculation the opposite of speculation in a sense is
- 00:24
well just real investing that is doing research on a company or an industry
Full Transcript
- 00:28
finding the megatrend it feeds into and doing the math on its earnings and [Man completing math work]
- 00:33
realizing that the company will in fact in two years earn more like five bucks a
- 00:37
share rather than three bucks a share that well everyone on Wall Street ie the
- 00:41
stock brokers are publishing and predicting speculation is just kind of
- 00:45
throwing money at things on a wing and a prayer and you know hoping for that
- 00:50
miracle yeah but doesn't usually happen so just be an investor
Related Videos
What is bankruptcy? Deadbeats who can't pay their bills declare bankruptcy. Either they borrowed too much money, or the business fell apart. They t...
What's a dividend? At will, the board of directors can pay a dividend on common stock. Usually, that payout is some percentage less than 100 of ear...
GED Social Studies 1.1 Civics and Government
How are risk and reward related? Take more risk, expect more reward. A lottery ticket might be worth a billion dollars, but if the odds are one in...