Speculator

Categories: Stocks, Investing

See: Speculation.

Everyone who buys a state lottery ticket is one of these. They're rolling a 20 on a wing and a prayer, believing that it's their turn in line to make it to the Big Time.

Many companies are formed with analogous odds of success. Wild cat oil drilling is sorta one of them, albeit with much better odds. Or at least...much less awful odds. Same deal with oh so many iTunes apps made with love, only to be ignored by the masses. But, every now and then, something big breaks, and 14 million downloads of Pin the Vulgar Sign On Your Ex later, some apps-building speculator wins big.

Related or Semi-related Video

Finance: What is speculation?6 Views

00:00

Finance a la shmoop what is speculation? wild bets crazy dreams invested upon the [Man placing bet and woman dreaming about money]

00:11

state lottery betting the ranch on red

00:15

drilling randomly on street corners hoping to find oil you don't want to do

00:20

that all right that's speculation the opposite of speculation in a sense is

00:24

well just real investing that is doing research on a company or an industry

00:28

finding the megatrend it feeds into and doing the math on its earnings and [Man completing math work]

00:33

realizing that the company will in fact in two years earn more like five bucks a

00:37

share rather than three bucks a share that well everyone on Wall Street ie the

00:41

stock brokers are publishing and predicting speculation is just kind of

00:45

throwing money at things on a wing and a prayer and you know hoping for that

00:50

miracle yeah but doesn't usually happen so just be an investor

Find other enlightening terms in Shmoop Finance Genius Bar(f)