You are considered to be engaging in ________ when you purchase an asset whose value depends solely on supply and demand.
A)investing
B)speculation
C)hedging
D)optioning
E)none of the above

Question

Quizplus · Accepted Answer

When you purchase an asset whose value depends solely on supply and demand, you are engaging in speculation. This means that you are betting on the asset's future price movements without any guaranteed return on your investment. Investing typically involves buying assets that generate income or appreciate in value over the long term. Hedging involves taking positions to offset potential losses in other positions, and optioning involves buying or selling options contracts that give you the right (but not the obligation) to buy or sell an asset at a specified price.

You Are Considered to Be Engaging in ________ When You