Speculation

Speculation refers to the act of forming theories or conjectures about a subject without firm evidence or certain knowledge. In finance, it involves the purchase of assets, such as stocks or real estate, with the expectation of future price increases, often accompanied by a higher degree of risk. Speculators aim to profit from market fluctuations rather than holding investments for the long term. The term can also apply to general contexts where individuals make educated guesses or predictions about future events based on limited information.