speculation definition | Dictionary.com

spec⋅u⋅la⋅tion

[spek-yuh-ley-shuh

–noun

1.	the contemplation or consideration of some subject: to engage in speculation on humanity's ultimate destiny.

2.	a single instance or process of consideration.

3.	a conclusion or opinion reached by such contemplation: These speculations are impossible to verify.

4.	conjectural consideration of a matter; conjecture or surmise: a report based on speculation rather than facts.

5.	engagement in business transactions involving considerable risk but offering the chance of large gains, esp. trading in commodities, stocks, etc., in the hope of profit from changes in the market price.

6.	a speculative commercial venture or undertaking.

Origin:
1325–75; ME speculacioun < LL speculātiōn- (s. of speculātiō) exploration, observation. See speculate, -ion

Synonyms:
3. supposition, view, theory, hypothesis.

Dictionary.com Unabridged
Based on the Random House Dictionary, © Random House, Inc. 2009.
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Link To speculation

spec·u·la·tion (spěk'yə-lā'shən)

1. Contemplation or consideration of a subject; meditation.
2. A conclusion, opinion, or theory reached by conjecture.
3. Reasoning based on inconclusive evidence; conjecture or supposition.
4. Engagement in risky business transactions on the chance of quick or considerable profit.
5. A commercial or financial transaction involving speculation.
1. Engagement in risky business transactions on the chance of quick or considerable profit.
2. A commercial or financial transaction involving speculation.

The American Heritage® Dictionary of the English Language, Fourth Edition
Copyright © 2009 by Houghton Mifflin Company.
Published by Houghton Mifflin Company. All rights reserved.
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Speculation

Spec`u*la"tion\, n. [L. speculatio a spying out, observation: cf. F. sp['e]culation.]

1. The act of speculating. Specifically: (a) Examination by the eye; view. [Obs.] (b) Mental view of anything in its various aspects and relations; contemplation; intellectual examination.

Thenceforth to speculations high or deep I turned my thoughts. --Milton. (c) (Philos.) The act or process of reasoning a priori from premises given or assumed. (d) (Com.) The act or practice of buying land, goods, shares, etc., in expectation of selling at a higher price, or of selling with the expectation of repurchasing at a lower price; a trading on anticipated fluctuations in price, as distinguished from trading in which the profit expected is the difference between the retail and wholesale prices, or the difference of price in different markets.

Sudden fortunes, indeed, are sometimes made in such places, by what is called the trade of speculation. --A. Smith.

Speculation, while confined within moderate limits, is the agent for equalizing supply and demand, and rendering the fluctuations of price less sudden and abrupt than they would otherwise be. --F. A. Walker. (e) Any business venture in involving unusual risks, with a chance for large profits.

2. A conclusion to which the mind comes by speculating; mere theory; view; notion; conjecture.

From him Socrates derived the principles of morality, and most part of his natural speculations. --Sir W. temple.

To his speculations on these subjects he gave the lofty name of the "Oracles of Reason." --Macaulay.

3. Power of sight. [Obs.]

Thou hast no speculation in those eyes. --Shak.

4. A game at cards in which the players buy from one another trumps or whole hands, upon a chance of getting the highest trump dealt, which entitles the holder to the pool of stakes.

Webster's Revised Unabridged Dictionary, © 1996, 1998 MICRA, Inc.
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Language Translation for : speculation

Spanish: especulación,

German: die Vermutung,

Japanese: 推測

More Translations »

speculation

c.1374, "contemplation, consideration," from O.Fr. speculation, from L.L. speculationem (nom. speculatio) "contemplation, observation," from L. speculatus, pp. of speculari "observe," from specere "to look at, view" (see scope (1)). Disparaging sense of "mere conjecture" is recorded from 1575. Meaning "buying and selling in search of profit from rise and fall of market value" is recorded from 1774; short form spec is attested from 1794. Speculator in the financial sense is first recorded 1778. Speculate is a 1599 back-formation.

Speculation

The process of selecting investments with higher risk in order to profit from an anticipated price movement.

Investopedia Commentary

Speculation should not be considered purely a form of gambling, as speculators do make informed decision before choosing to acquire the additional risks. Additionally, speculation cannot be categorized as a traditional investment because the acquired risk is higher than average.

More sophisticated investors will also use a hedging strategy in combination with their speculative investment in order to limit potential losses.

speculation

The taking of above-average risks to achieve above-average returns, generally during a relatively short period of time. Speculation involves buying something on the basis of its potential selling price rather than on the basis of its actual value.

Main Entry: spec·u·la·tion
Pronunciation: "spe-ky&-'lA-sh&n
Function: noun
: an act or instance of speculating: as a : assumption of unusual business risk in hopes of obtaining commensurate gain b : a transaction involving such speculation

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