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Speculation & Money Making in Stock Market

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In financial markets, “Speculation is trading in shares or commodities or in any financial instrument involving high risk in expectation of substantial gains”.
This is an act of trading in financial instruments or act of entering into any financial transaction that has a significant risk of losing most of or all of the initial investment in expectation of significant gains. Decision making based on anticipation of what the future can be, is speculating. What motivates speculating is the possibility to make huge gains out of the transaction by putting some money on risk. One looks for and expects big rewards as proportionate to the risk taken.


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