Speculators in the financial market:
A) act as buyers only.
B) act as sellers only.
C) buy and sell assets for financial gain.
D) reduces risk in financial markets.

Question

Quizplus · Accepted Answer

Speculators in the financial market buy and sell assets (whether it be stocks, currencies, commodities, or other financial instruments) in order to earn a profit on price movements. They do not necessarily have an interest in the underlying asset or its fundamentals, but rather focus on short-term price fluctuations. Therefore, they can act as both buyers and sellers depending on their predictions of market trends.

Speculators in the Financial Market