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speculation

speculation

13 5.5
Buying things like shares or houses that are risky to try to make a large profit
  • noun
  • /ˌspɛkjʊˈleɪʃən/
  • Specialized
translation icon : especulación
  • There was the S&L scandal, which was mainly driven by illegal speculation in Texas real estate.
  • real estate speculation
  • financial speculation
  • stock speculation

Typically, it's a failed speculation that brings down a financial institution.

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Examples

  • In times of crisis, market speculation magnifies actual price changes.

    Academic text (2004)
  • With regulation of the financial markets delayed, speculation on the stock market became rampant.

    Academic text (1991)
  • Typically, it's a failed speculation that brings down a financial institution.

  • Economies more and more rely on people being in debt and speculation on that debt.

  • Paul invested a considerable sum of money in an oil well speculation with a partner who was a close friend.

    Fiction book (1998)
  • There is often a tidy profit in speculation.

  • Another unplanned result of the reform policies was the increase in property and land speculation.

    Academic text (1996)
  • As in any boomtown, speculation is rampant, and there are no small deals.

    Academic text (1993)
  • Flamboyant investment activities invited speculation, which in turn fueled short-term investment behavior.

    Academic text (2001)
  • Investing in real estate can be a risky form of speculation that leads to high profits if successful.

Synonyms

venture
vsspeculation
271 5.1

A business or project that involves risk and possible loss

is a risky investment aiming for large profit rather than a general project

How Risky

gamble
65 3.5
speculation
  • Specialized
13 5.5
investment
3.2
savings
606 1.0

Surface Forms

speculation singular
speculations plural

Morphology

speculation = speculate (semi-transparent) = speculate + ion

The financial/investment sense is a domain-specific extension of the nominalization and requires knowledge of economic contexts, so it is not fully transparent to learners.

Etymology

Speculation comes from the root spec- 'to look', and it grew to mean taking a 'view' about the future, like 'looking ahead' and making a choice. So, in finance a speculation is a risky investment made in hope of a big profit.