Speculation

Speculation may be defined as buying thing in the hope of selling them later at a higher price, or selling things which the speculator does not possess, hoping to buy them at a lower price. Speculative operations are in the nature of futures or forward trading . It means buying and selling goods for future delivery at a price agreed in advance.

Speculation in Securities

Stock exchange is the place where the listed securities are marketed. The people who buy and sell securities will have different motives, namely, investment motive and speculative motive. There are some persons who buy securities with a view to investing their money for the purpose of getting an income or selling them for getting ready cash. Such persons are called genuine investors. But there are some people who buy securities with a hope of selling them in future at a profit or in the expectation of being able to buy them