How do you define investment and speculation, and what is the difference between the two?

The term investment has several related meanings in both financial and economic contexts. It involves the accumulation of property with a view to earning in the future. Technically, the word means "the act of putting something somewhere else" (perhaps originally associated with a person's clothing or "dress").

From a financial point of view, compared to speculation (

In other words, the investment period is longer, and it tends to be in order to obtain some kind of more continuous and stable cash flow income in a certain period of time in the future, which is the accumulation of future income [1] . What is Speculation? According to the definition of the New Palgrave Economic Dictionary, it refers to the economic behavior of "temporarily buying (or selling) goods for the purpose of re-buying (or buying) rather than for use, in order to profit from the change", because to profit from the change, it is necessary to grasp the timing of buying and selling, so it is called "speculation".

Obviously, speculation is essentially an economic act of investing money to obtain unproductive wealth.

Investment is based on objective conditions, based on one's own experience, a rational decision, a little less risky. Speculation is with the meaning of shortcuts, and there are also rational considerations, but there are risky ideas, and the probability of success is half and half, which is a risky investment, just like buying.

To put it simply, investing is something that everyone can do, but there is a difference between success and failure. Going to the bank to save money is an investment, the risk is very small, and the return is very small; Speculation requires brains. The opportunity is an opportunity, a fleeting thing, others don't notice you, and if you catch it, you will get a super high return.

Tend not to cost too much.

Investing is investing money in a certain industry to make money. Speculation is the opportunity to intervene after some kind of business opportunity or what good opportunity is shipped.

The essence of investment and speculation is to obtain profits, but the difference between the two is still relatively obvious. They are: different length of time, different focus on benefits, different degrees of risk, and different degrees of understanding.

Extended information: The length of time is different: the investment period is longer, usually long-term holding**, **, etc. Speculation is for a relatively short period of time and is usually a quick buying and selling.

Focus on different interests: Investment is more focused on long-term benefits, and short-term losses do not affect the overall return. Speculation focuses on short-term interests, and the rise and fall of ** in the short term has a very large impact on speculation.

Different levels of risk: Due to the long term of investment, investors can diversify their investment management during this period of time to reduce risk. Speculation, on the other hand, is a relatively concentrated high-risk investment behavior, and the possibility of loss is relatively large.

Different levels of understanding: investment is usually to buy and sell bonds, **, etc., which you know better, while speculation is a follow-up behavior, and you may not know what you are buying and selling.

Investment refers to the process by which a state, an enterprise or an individual signs an agreement with the other party for a specific purpose to promote social development, achieve mutual benefit and transfer funds. It is also an economic behavior in which a specific economic entity invests a sufficient amount of capital or monetary equivalents in kind into a certain field within the period of return to the mu in order to obtain income or capital appreciation in the foreseeable period in the future.

It can be divided into physical investment, capital investment and ** investment. The former is to invest money in the enterprise and obtain certain profits through production and business activities, and the latter is to purchase the ** and corporate bonds issued by the enterprise with money.

Indirect participation in the profit distribution of the enterprise.

Investment is a form of incubation of innovation and entrepreneurship projects, and it is an economic activity to promote the development of the industrialization complex of the project.

Investment is a profit-making business activity in which the owner of monetary income or any other wealth whose value can be measured in monetary terms sacrifices current consumption, purchases, or acquisitions of capital goods with a view to increasing value in the future.

The term investment has several related meanings in both financial and economic contexts. It involves the accumulation of property with a view to earning in the future. Technically, the word means "the act of putting something somewhere else" (perhaps originally associated with a person's clothing or "dress").

From Finance. From the point of view, compared with speculation, the investment period is longer, and it is more likely to obtain some kind of sustainable and stable cash flow in a certain period of time in the future.

Earnings are the accumulation of future earnings.

The length of the time limit of the two behaviors is different. It is generally believed that the investment period is longer, and investors are willing to invest in physical socks or hold them for a long time**, while the speculation period is shorter, and speculators are keen to buy and sell quickly on a regular basis;

The focus of the interests of the two is different. Investors focus on long-term interests, while speculative activities focus on short-term fluctuations in order to seek short-term benefits;

The risks they take are not the same. It is generally believed that the risk of investment is small and the principal is relatively safe, while the risk involved in speculation may be large, and there is a risk of loss of the principal, so speculation is called "high-risk investment"; Fourth, the two trade in different ways.

The essential difference between investment and speculation is that investment is capital for income, while speculation is a zero-sum game.

Analysis of the two: 1. Investment.

Normal investment behavior, under the conditions of a market economy, is achieved through a win-win or multi-win approach.

There is long-term cooperation to achieve common interests, and in the common good, share their part.

A set of mutually agreed rules that need to be subordinated to such a goal.

The so-called rules are not only to ensure themselves, but also to ensure the other party.

One of these principles is integrity and mutual assistance.

This strengthens the relationship and, ultimately, benefits you.

2. Speculation. Speculation has no real collaborators, only its own interests.

Speculators are often engaged in one-shot trading.

As long as you can get the maximum benefits, you will not hesitate to hurt the other party, and even grab the interests of the other party to the greatest extent.

The so-called zero-sum game means that one's own gains must be at the expense of the other party's losses.

The white wolf with empty gloves, luring the other party to take the bait, and hiding the killing machine in the contract are all commonly used methods.

In my opinion, the fundamental difference between whether a buy or sell is an investment or a speculation is what the decision is based on, regardless of the length of time the asset is held, the frequency of entry and exit, or even whether it is ultimately a profit or loss.

For investment, his decision-making is based on the equity value behind the **, compared with the current ****, is it high or low, expensive or cheap, what are the future development prospects, and what are the fundamentals? This is a series of issues that investors should first consider. If he can make money, it is because the equity in his hands has appreciated, and the operators of listed companies have made money for shareholders and can share more dividends every year, so the stock price has risen.

For investment, it doesn't matter how long the holding time is, if the ** he holds rises to the target overnight, he thinks that this ** ticket is only worth this money, then he can sell it;

For speculation, the basis of his decision comes from the counterparty, that is, the game. If the counterparty is willing to buy higher than what he originally bought, then the person makes money. And if the person who comes behind wants to make money, he has to find someone who is willing to pay more ** to buy ** from him, so beat the drum and pass the flowers, and see who receives the last baton.

If he wants to make money, then he has to think about how to beat "Mr. Market", and he can make money based on the losses of the counterparty.

What is the difference between investment and speculation?