Buying and selling stocks in the stock exchange in anticipation of changes in the share price is?
-
A.
hedging -
B.
projection -
C.
forecasting -
D.
speculation
Correct Answer: Option D
Explanation
Speculation refers to the act of conducting a financial transaction that has substantial risk of losing value but also holds the expectation of a significant gain or other major value. it is a situation where players in the stock exchange buy or sell securities with the expectation that they mabe a fall or rise in the prices of the said securities in future.