Question

Is speculation essential in Stock Exchange?

Answer 1

Speculation: One often hears that the stock exchange is a speculative market. And while this is true, the speculation is kept within the legal framework. For the stake of liquidity and price determination, a healthy dose of speculative trading is necessary, and the stock exchange provides us with such a platform.

Answer 2

Answer :-

● In finance speciculation is a practice of engaging in risky financial transactions in an attempt to profit from short term fluctuations in the market values of a tradable financial instrument.

● Rather than attempting to profit from the underlying financial attributes embodied in instruments like capital gains.

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