Speculation is said to be the act of buying shares, properties,goods and other securities ahead of time, and believing that it could be sold profitably after.
The people who do these are called speculators.
Types of speculators
1.The Bulls
2.The Bear
3.The stag
Explanations
The bulls: Is a speculator who buys goods during the duration of lower prices with the hope that the price he will sell he will gain higher profit he is optimistic.
The Bear: Is a speculator who sells off his shares when the prices are high with the intention to repurchase them when their prices comes down and by so doing make a profit.
The stag: Is a speculator who is involved in the buying and selling of new issue of share for a profit.
You must be logged in to post a comment.