Wyler Series On Stock Market Speculation
'Speculator' redirects here. For the Montana mining incident, see. For the village in New York, see. For the archaic tactic in rugby, see.Speculation is the purchase of an asset (a, or ) with the hope that it will become more valuable in the near future. In finance, speculation is also the practice of engaging in risky financial transactions in an attempt to profit from short term fluctuations in the of a tradable —rather than attempting to profit from the underlying financial attributes embodied in the instrument such as capital gains, dividends, or interest.Many speculators pay little attention to the of a security and instead focus purely on. Speculation can in principle involve any tradable good or financial instrument. Speculators are particularly common in the markets for, and.Speculators play one of four primary roles in financial markets, along with, who engage in transactions to offset some other pre-existing risk, who seek to profit from situations where instruments trade at different prices in different market segments, and who seek profit through long-term ownership of an instrument's underlying attributes.
Contents.History With the appearance of the in 1867, which removed the need for traders to be physically present on the floor of a stock exchange, stock speculation underwent a dramatic expansion through the end of the 1920s. The number of shareholders increased, perhaps, from 4.4 million in 1900 to 26 million in 1932. Speculation and investment The view of what distinguishes investment from speculation and speculation from excessive speculation varies widely among pundits, legislators and academics. Some sources note that speculation is simply a higher risk form of investment.
Others define speculation more narrowly as positions not characterized as hedging. Commodity Futures Trading Commission defines a speculator as 'a trader who does not hedge, but who trades with the objective of achieving profits through the successful anticipation of price movements.'
The agency emphasizes that speculators serve important market functions, but defines excessive speculation as harmful to the proper functioning of futures markets.According to Benjamin Graham in, the prototypical defensive investor is '.one interested chiefly in safety plus freedom from bother.' He admits, however, that '.some speculation is necessary and unavoidable, for in many common-stock situations, there are substantial possibilities of both profit and loss, and the risks therein must be assumed by someone.' Thus, many long-term investors, even those who buy and hold for decades, may be classified as speculators, excepting only the rare few who are primarily motivated by income or safety of principal and not eventually selling at a profit. Economic benefits Sustainable consumption level. Main article:Some nations have moved to limit foreign ownership of to ensure that food is available for local consumption, while others have leased food land abroad despite receiving aid from the.In 1935 the passed a law allowing the government partial restriction and direct control of (Defence of India Act, 1935).
It included the ability to restrict or ban the trading in derivatives on food commodities. After achieving independence in 1947, India in the 1950s continued to struggle with feeding its population and the government increasingly restricted trading in food commodities. Just at the time the was established in 1953, the government felt that derivative markets increased speculation, which led to increased food costs and price instabilities. In 1953 it finally prohibited options- and futures-trading altogether. The restrictions were not lifted until the 1980s.Regulations In the, following passage of the of 2010, the (CFTC) has proposed regulations aimed at limiting speculation in futures markets by instituting position limits. The CFTC offers three basic elements for their regulatory framework: 'the size (or levels) of the limits themselves; the exemptions from the limits (for example, hedged positions) and; the policy on aggregating accounts for purposes of applying the limits.'
The proposed position limits would apply to 28 physical commodities traded in various exchanges across the US.Another part of the Dodd-Frank Act established the, which deals with speculative investments of banks that do not benefit their customers. Passed on 21 January 2010, it states that those investments played a key role in the. Proposals., p. Szado, Edward (2011). The Journal of Alternative Investments. CAIA Association. Commodity Futures Trading Commission.
Speculation Stocks
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Stock Market Crash
Pp. 40–41., p. 831: 'In a setting in which speculation is not possible, bubbles and crashes are observed. The results suggest that the departures from fundamental values are not caused by the lack of common knowledge of rationality leading to speculation, but rather by behavior that itself exhibits elements of irrationality.'
Barkley (2000). P. 107. ^ Shiller, Robert J.
(23 July 2012). Retrieved 29 August 2012. Siegel, Journal (2003). European Financial Management. 9 (1): 11–24. Dr. Stephen Spratt of Intelligence Capital (September 2006).
What Is Stock Market Speculation
Stamp Out Poverty report. Stamp Out Poverty Campaign.
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Financial Analysts Journal: 35–37. Compare: Valente, Marcela. IPS, 22 May 2011. 'The governments of Argentina, Brazil and Uruguay are drafting laws to curb acquisition by foreigners of extensive tracts of their fertile agricultural land. China, Egypt, Japan, South Korea, Saudi Arabia, India, Bahrain, Kuwait, Oman, Qatar and the United Arab Emirates are all buying or leasing fertile land in other countries where food is not always abundant, the Grain report says.The study says Cambodia, which receives aid from the World Food Programme, has leased rice fields to Qatar and Kuwait, while Uganda has granted concessions on its wheat and maize fields to Egypt, and interested parties from Saudi Arabia and the United Arab Emirates are making approaches to the Philippines.'
. Frida Youssef (October 2000). Commodity Futures Trading Commission. Retrieved 21 August 2012. Commodity Futures Trading Commission. Retrieved 21 August 2012. David Cho and Binyamin Appelbaum (22 January 2010).
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