Investment and speculation are two distinct financial strategies used to generate returns. Investment involves the purchase of assets with a long-term view, while speculation is driven by short-term gains. This article will discuss the differences between these two approaches.
About Difference Between Investment And Speculation
Investment | Speculation |
---|---|
Planned and systematic approach | High risk with the potential for high returns |
Long-term goals | Short-term objectives |
Focus on fundamentals | Focus on market trends |
Minimizes losses | Risk of large losses |
Stable growth | Volatile returns |
Low liquidity | High liquidity |
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