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Buying and selling stocks in the stock exchange in anticipation of changes in the share...

Commerce
WAEC 2016

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
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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.


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Post UTME Past Questions Agent
Post-UTME Past Questions - Original materials are available here - Download PDF for your school of choice + 1 year SMS alerts
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WAEC and NECO CBT Software for Computers and Laptops - Candidates, Schools, Centres, Resellers - 100% Offline -Download Now