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    Investment Vs Speculation

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    shehbaz_khanna28
    1. Investment involves sacrificing current consumption for future benefits through purchasing assets that are not necessarily marketable in the short term. It aims to generate a series of returns through thoughtful decision making based on risk and expected return. 2. Speculation does not promise the safety of the initial investment or return of principal. It is usually short-term and involves buying assets with the goal of profiting from price changes rather than underlying asset performance. 3. Key differences between investment and speculation are basis of acquisition (outright vs. margin purchase), marketability of assets, level of risk undertaken, possibility of insider trading, stability of income, income sources, and commitment length (long-term vs. short-term).

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    Investment Vs Speculation

    Uploaded by

    shehbaz_khanna28
    52 views8 pages
    1. Investment involves sacrificing current consumption for future benefits through purchasing assets that are not necessarily marketable in the short term. It aims to generate a series of returns through thoughtful decision making based on risk and expected return. 2. Speculation does not promise the safety of the initial investment or return of principal. It is usually short-term and involves buying assets with the goal of profiting from price changes rather than underlying asset performance. 3. Key differences between investment and speculation are basis of acquisition (outright vs. margin purchase), marketability of assets, level of risk undertaken, possibility of insider trading, stability of income, income sources, and commitment length (long-term vs. short-term).

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    mba project report on equity vs investment

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    speculationvsinvestment-130130004343-phpapp01

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    1. Investment involves sacrificing current consumption for future benefits through purchasing assets that are not necessarily marketable in the short term. It aims to generate a series of returns through thoughtful decision making based on risk and expected return. 2. Speculation does not promise the safety of the initial investment or return of principal. It is usually short-term and involves buying assets with the goal of profiting from price changes rather than underlying asset performance. 3. Key differences between investment and speculation are basis of acquisition (outright vs. margin purchase), marketability of assets, level of risk undertaken, possibility of insider trading, stability of income, income sources, and commitment length (long-term vs. short-term).

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    Download as pptx, pdf, or txt
    52 views8 pages

    Investment Vs Speculation

    Uploaded by

    shehbaz_khanna28
    1. Investment involves sacrificing current consumption for future benefits through purchasing assets that are not necessarily marketable in the short term. It aims to generate a series of returns through thoughtful decision making based on risk and expected return. 2. Speculation does not promise the safety of the initial investment or return of principal. It is usually short-term and involves buying assets with the goal of profiting from price changes rather than underlying asset performance. 3. Key differences between investment and speculation are basis of acquisition (outright vs. margin purchase), marketability of assets, level of risk undertaken, possibility of insider trading, stability of income, income sources, and commitment length (long-term vs. short-term).

    Copyright:

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    Investment Vs Speculation

    What is Investment ?
    Investment involves making a sacrifice of in the present with the hope of deriving future benefits.
    Postponed consumption

    The two important features are :


    Current Sacrifice. Future Benefits.

    Cont
    It also involves putting money into an asset which is not necessarily marketable in the short run in order to enjoy the series of returns the investment is expected to yield. People who make fortunes in stock market and they are called investors. Decision making is a well thought process. Key determinant of investment process:
    Risk Expected Return

    What is Speculation?
    Speculation is a financial action that does not promise safety of the initial investment along with the return on the principal sum. Its is usually short run phenomenon. Speculator the person tend to buy the assets with the expectation that a profit cane earned from subsequent price change and sale.

    Process of Investment and Speculation

    Investment vs. Speculation


    Basis Investment Speculation

    1. Basis of acquisition

    Usually by outright purchase

    Often on Margin

    2.Marketable Asset

    Not necessary

    Necessary

    3.Quantity of risk

    Small

    Large

    Investment Vs Speculation
    Basis 4.Insider trading analysis Investment Not possible Speculation Based on insider trading transaction happen Uncertain and erratic

    5.Stability of Income

    Very stable

    6.Sources of income

    Earning of enterprises

    Change in market price

    7.Length of commitment

    Long run

    For a short time period

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