answersLogoWhite

0

Politicians and the media often give the impression that stock market speculation is a "dirty word". The dictionary defines speculation as "an assumption of unusual business risk in hopes of obtaining commensorate gain".

The truth is that there is risk in all Stock Market investments. There are no guarantees. Some investments are riskier than others, but let's not assume that there are some sure-fire investments that provide guaranteed gain.

One area of speculation is "penny stocks". Penny stocks are stocks that sell for less than $5.00 per share. Some stocks truly cost mere pennies per share. Some investors like to buy penny stocks because some penny stocks will experience extra-ordinary increases in the stock price in relatively short periods of time. However, the risk in buying penny stocks is very high and many investors lose a great deal of money buying penny stocks.

Risk is not limited to penny stocks. Once again, speculation should not be treated as a dirty word. It is indicative of risk that all investors have to accept when they buy stocks at any price.

User Avatar

Wiki User

12y ago

What else can I help you with?

Related Questions

What event is often considered to be the starting point of the great depression?

(apex) black tuesday


The president during the 1929 crash stock market was?

Herbert Hoover was president of the United States during the stock market crash of 1929.


What event was the catalyst of the Great Depression?

Stock Market Crash


Did the stock market crash in 1929?

yes it did


What happened to the unemployment rate after the stock market crash in 1929?

After the stock market crash in 1929, the unemployment rate in the United States significantly increased.


Did the stock market crash happen in the 20th century?

The Stock Market Crash happened in 1929 on Black Tuesday.


What is the stock market crash seen as the beginning of?

If you are referring to the stock market crash of 1929, that was the beginning of the Great Depression.


What was other names for the stock market crash?

It was known as the Crash of '29, Black Thursday, Black Monday, Black Tuesday.The nickname for the stock market crash is called Black Tuesday. This led to the Great Depression and happened in 1929.


Which of these events marked the beginning of the Great Depression?

The Stock Market crash. It is also called Black Tuesday and the year is 1929.


What event is considered the start of the Great Depression?

The stock market crash of 1929. novanet - stock prices crashed when millions of shares of stocks were sold


1929 The New York stock market crashed which began what?

The 1929 stock market crash began the Great Depression.


What is the relevance today of the 1929 stock market crash?

what