Investment and Speculation
In life, speculation is a financial action that does not promise safety of capital investment along with the return on the principal sum. Speculation typically involves the lending of money for the purchase of assets, equity or debt but in a manner that has not been given thorough analysis or is deemed to have low margin of safety or a significant risk of the loss of the principal investment. The term, "speculation," which is formally defined as above in Graham and Dodd's 1934 text, Security Analysis, contrasts with the term "investment," which is a financial operation that, upon thorough analysis, promises safety of principal and a satisfactory return.
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Financial Markets: Learning from and Responding to Financial Crisis II (Lawrence Summers) (Video Lecture 26 of 26)
ECON 252: Financial Markets ...
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Financial Markets: Learning from and Responding to Financial Crisis I (Lawrence Summers) (Video Lecture 25 of 26)
ECON 252: Financial Markets ...
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Financial Markets: Making It Work for Real People: The Democratization of Finance (Video Lecture 24 of 26)
ECON 252: Financial Markets ...
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