In finance, speculation is the purchase of an asset (a commodity, goods, or real estate) with the hope that it will become more valuable shortly. It can also refer to short sales in which the speculator hopes for a decline in value.
Many speculators pay little attention to the fundamental value of a security and instead focus purely on price movements.[citation needed] In principle, speculation can involve any tradable good or financial instrument. Speculators are particularly common in the markets for stocks, bonds, commodity futures, currencies, fine art, collectibles, real estate, and derivatives.
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