Many Types of Speculative Investments
Buy the stock of an unprofitable, high-growth company. Buy a biotechnology stock with no revenue in hopes of a drug approval. Trade currencies.
MyBankTracker has compiled a haunting, nightmarish list of the worst investments you could ever make.
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Speculative investment example
For example, if a speculator believes that the stock of a company called X is over-priced, he or she might short the stock and wait for a favorable time when the price falls and then sells it to make a profit.
That said, if you have cash to invest, you may want to consider buying recession-friendly sectors such as consumer staples, utilities and health care. Stocks that have been paying a dividend for many years are also a good choice, since they tend to be long established companies that can withstand a downturn.
Investing in cryptocurrencies and ICOs is highly speculative and an investor can lose the entire amount of their investment. If a cryptocurrency is deemed a security, it may be deemed to violate federal securities laws. There may be a limited or no secondary market for cryptocurrencies.
A speculative investment is one with a high degree of risk where the focus of the purchaser is on price fluctuations. The investor buys the tradable good (financial instrument) in an attempt to profit from market value changes. We call somebody who makes a speculative investment a speculator.
an investment in which you do not make a profit, or make less profit than you hoped: Property has proved to be a bad investment over the last few years. Bad investment over a number of years has led to this situation.
Debt Mutual Fund: Debt funds are considered one of the best investment options for investors who want to gain a steady ROI. Under debt fund, the investment is made in fixed-interest securities like corporate bonds, government securities, treasury bills, commercial paper, and various other money market tools.
Investment Products
All have higher risks and potentially higher returns than savings products. Over many decades, the investment that has provided the highest average rate of return has been stocks. But there are no guarantees of profits when you buy stock, which makes stock one of the most risky investments.
For example, certificates of deposit (CDs), money market accounts, municipal bonds and Treasury Inflation-Protected Securities (TIPS) are among the safest types of investments. ... Money market accounts are similar to CDs in that both are types of deposits at banks, so investors are fully insured up to $250,000.
Speculation is a form of active investing that involves making and acting on market predictions — It comes with high risk, but also the chance for substantial gains on short-term investments.
Investing usually means smaller short-term wins, but also fewer severe losses. If you're comfortable with the risks, trading with a portion of your money can be enjoyable and could lead to profits. If reducing risk and exposure to volatility are your main goals, then you'll want to stick with long-term investing.
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