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InvestHub.com's
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.
 

Definition 2.

Taking large risks, especially with respect to trying to predict the future; gambling, in the hopes of making quick, large gains.
 

Definition 3.

The process of selecting investments with higher risk in order to profit from an anticipated price movement.
 
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