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==Etymology==
Latin speculatus, past participle of speculari to spy out, [[examine]], from specula lookout post, from specere to look, look at
*Date: [http://www.wikipedia.org/wiki/16th_Century 1599]
:intransitive verb
*1 a : to meditate on or ponder a subject : reflect b : to review something idly or casually and often inconclusively
82 : to assume a business risk in hope of gain; especially : to buy or sell in expectation of profiting from market fluctuations
:transitive verb
*1 : to take to be true on the basis of insufficient evidence : theorize
*2 : to be curious or doubtful about : wonder
==Description==
In finance, '''speculation''' is a [[financial]] [[action]] that does not promise [[safety]] of the initial investment along with the return on the principal sum. Speculation typically involves the lending of [[money]] or the purchase of [[assets]], equity or debt but in a [[manner]] that has not been given thorough [[analysis]] or is deemed to have low margin of safety or a significant [[risk]] of the loss of the principal investment. The term, "speculation," which is [[formally]] defined as above in Graham and Dodd's 1934 text, Security Analysis, [[contrast]]s with the term "investment," which is a [[financial]] operation that, upon thorough [[analysis]], promises safety of principal and a satisfactory return.
[[Category: Economics]]
[[Category: General Reference]]
==Etymology==
Latin speculatus, past participle of speculari to spy out, [[examine]], from specula lookout post, from specere to look, look at
*Date: [http://www.wikipedia.org/wiki/16th_Century 1599]
:intransitive verb
*1 a : to meditate on or ponder a subject : reflect b : to review something idly or casually and often inconclusively
82 : to assume a business risk in hope of gain; especially : to buy or sell in expectation of profiting from market fluctuations
:transitive verb
*1 : to take to be true on the basis of insufficient evidence : theorize
*2 : to be curious or doubtful about : wonder
==Description==
In finance, '''speculation''' is a [[financial]] [[action]] that does not promise [[safety]] of the initial investment along with the return on the principal sum. Speculation typically involves the lending of [[money]] or the purchase of [[assets]], equity or debt but in a [[manner]] that has not been given thorough [[analysis]] or is deemed to have low margin of safety or a significant [[risk]] of the loss of the principal investment. The term, "speculation," which is [[formally]] defined as above in Graham and Dodd's 1934 text, Security Analysis, [[contrast]]s with the term "investment," which is a [[financial]] operation that, upon thorough [[analysis]], promises safety of principal and a satisfactory return.
[[Category: Economics]]
[[Category: General Reference]]
