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Examples of speculative investments. These investments, while often popular, are also speculative in nature. Generally, you should be prepared to lose your entire investment if you put money into ...
Once the bubble bursts, the fall in prices causes the collapse of unsustainable investment schemes (especially speculative and/or Ponzi investments, but not exclusively so), which leads to a crisis of consumer (and investor) confidence that may result in a financial panic and/or financial crisis.
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. [3]
A speculative investment -- or "when an investor hopes to profit from a rapid change in the value of an asset," according to SoFi -- can be fairly high risk, unlike traditional investments. Indeed,...
The speculative or asset demand for money is the demand for highly liquid financial assets — domestic money or foreign currency — that is not dictated by real transactions such as trade or consumption expenditure. Speculative demand arises from the perception that money is optimally part of a portfolio of assets being held as investments.
For example, instead of needing $230 for one share of Apple (AAPL) stock, you could invest $10 and own about 4.3% of a share. ... percentage of your net worth to your speculative investment ...
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In finance, a high-yield bond (non-investment-grade bond, speculative-grade bond, or junk bond) is a bond that is rated below investment grade by credit rating agencies. These bonds have a higher risk of default or other adverse credit events but offer higher yields than investment-grade bonds to compensate for the increased risk.