a speculative share is one that provides High risk and Low return
True or falseSpeculative shares True or false question?
To speculate means to gamble. High risk, means possible high return. You are gambling. It also means possible if not probable high loss.Speculative shares True or false question?
Perhaps it would be best to rephrase the question as ';What is a speculative stock investment';? The answer is,';One that relies on a change in price to provide the gain.'; If we ';Go long'; we are speculating that the stocks price will rise, thereby providing the gain. If on the other hand we ';Go short'; we are hoping for a decrease in price to provide our gain. In either case we are speculating because we cannot know what will happen to the stocks price in the future. There is low risk speculation and high risk speculation either of which can result in low return, high return, no return at all or a loss.
A non-speculative stock investment would be one in which the issue of share-price increase or decrease is of little or no concern. Instead the motivation might be dividend income.
false
A speculative share provides high risk and high expected return.
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