In the extreme case this is merger arbitrage, described below. In addition, brokers usually allow bigger margins for day traders.
In this article, i would like to talk about the difference between three terms — investing, Trading and Speculation. Investing is the proactive use of money to make more money or, to say it another way, you make your money work for you. When you invest, you are buying an asset like shares, real estate or gold. The basic idea is to sell it at a future date when the value of these assets appreciates. Good investments are the soundest way of growing wealthy but can take time, perhaps even years, to work out because we live in an uncertain world.
Depending on the asset class in which you invest, the potential for profits and risk will also differ. Trading is a more short term activity than investing. Trading can be done in many fields. So the crucial factor that distinguishes a trade from an investment is the length of time you hold on to the assets.
Short term price fluctuations are caused by the variations in the demand and supply of a particular asset. Benjamin Graham the author of classic books Security Analysis and The Intelligent Investor is regarded as the father of financial analysis. An investment operation is one which, upon thorough analysis, promises safety of principal and a satisfactory return.
Now, at this point of time, It is unnecessary to start a complex discussion about investing, trading and saving. What is important is to understand that investing; trading and speculation are three different things. Since we are discussing about shares and stocks for trading or investment, our next chapter discusses about shares and stock markets in detail..
Detailed lessons on Futures and options are comming up soon. Yes, a complete idiot, raving about the Russians taking all the passengers off the plane and shooting them and other lunacies. Is he just stoned? This matter of NWO and Zionist and Masonic lies and scheming is too serious to allow mad theories to discredit serious analysis. How can you even start to argue with that? It is called the plane-switch, whereby, an identical plane was ordered from somewhere with four in the cockpit, according to union laws of flight in Russia, to deliver a passenger to Smolensk.
To explain their deaths to the general public, their names could have been added to the passenger list. He would send them to Georgia, the West Bank, anywhere his puppet-masters told him to send them. Poland uses the Euro and is in the EU. Leaving the Eurozone and the EU? After all, sometimes planes have been known to crash. These people are totally possessed by demons, so much so that it is the demons, and they are many, who manifest through them and their own identity is insignificant.
These demons then control everything that goes on beneath in the pyramid, in the terrestrial hierarchy, through their shadow government which is the demonic hierarchy of hell. This is why St Paul said our battle is not against flesh and blood but against the powers and principalities of the spiritual realm. These globalist banker controllers at the head of the terrestrial hierarchy of the emerging Dictatorship of Pure Evil, to give it a name - being of a totally occult bent, ie governed in all their decisions and actions, desires and drives, to manifest Satan et al in full control over the souls of men, do not, perhaps cannot, think like other men.
This type of thinking will limit our vision and we, by missing the big picture will not take corrective action. The big picture will spur us on to correct evasive and conquest techniques to oppose the demonic hierarchy, using for guidance the hierarchy of God and his angels led by St Michael the Great as I see and thus name him.
This guidance is freely available to all. Heaven is not an elitist paradise where only the chosen are admitted to begin with. You see this merciless pressure, deception and fabrication everywhere you look, but hopefully not within ourselves. This refers rather to those who have shunned the working of God in and on them…..
Christ died for all, not simply those among whom the Gospel has been preached to them by weak and faltering humanity, and who have responded to that particular grace…. There appears to be something of a precedent in terms of a need to reformulate their current practices.
Two years ago Poland faced the same problem on a smaller scale when top brass of the military lost their lives in a military transport flight involving a Spanish-made CASA CM. Twenty members of the Polish military were killed when their plane crashed on the way back from a flight safety conference. The plane, carrying 16 passengers including a brigadier general, a colonel and four crew members crashed on approach to an air force runway at Miroslawiec shortly after 7pm local time 6pm GMT.
The Spanish-built CASA CM military transport plane was about 3km from the airstrip when it clipped trees, crashed in a wooded area and burst into flames, officials said. The plane had more people on board when it took off from Warsaw, but had landed at three other military airports - in Powidz, Poznan and Krzesiny - to return soldiers to their home bases. It had been scheduled to make one more stop, in Swidwin, before returning to its base in Krakow. Polish media described the accident as the worst military disaster in more than three decades.
The Polish president, Lech Kaczynski, was cutting short his trip to Croatia to return to Poland today. The Polish military also uses the plane type in Iraq and in Afghanistan, where it supports the US-led operations. Obama Admin is still sitting on this one. In the past, the Polish government denied its involvement in rendition.
It failed to provide any of these flight records to previous investigations conducted by the European Parliament and the Council of Europe. That said, I highly respect Dr Henry Makow who has made invaluable contributions to the Truth movement.
I spoke today with one of my many sources who travels extensively throughout the world. The source felt strongly that Putin nor the Mossad had anything to do with the Polish plane crash. Did Putin, as you bring out so hilariously dear Akira, put some stupid pills into the Polish government officials so that they ALL would fly together? Ha ha. And whether or not they were flying to Russia to cement a Gazprom deal would NOT end that deal due to their deaths. The deal WILL be sealed if that is what has been planned for months with or without the dead officials.
If one buys vegetable plants from local stores, they are buying hybrid plants that have been genetically modified, from Monsanto. Seeds cannot be saved from these plants to replant. So I only buy heirloom, non GMO, open pollinated seeds. I grant him the benefit of doubt, but please understand that these are special times. Otherwise we will end up working and fighting wars for the Jew again. Smolensk does not have any permanent ILS system may be they use mobile military Russian versions occasionally.
So the crew must have been aware of altitude with synthetic voice calls and visual indications i. It should be noted that in some cases, e. My first impression points towards an accident although terrain awareness equipment can be jammed…. Perhaps Polish officials from now on should be restricted to getting around on tricycles, with helmets and kneepads.
Not even in Australia. This is their Achilles heal. As soon as their money is threatened they go ballistic, no matter what their slimy policies beforehand. The journalist who found no bodies at the crash site almost immediately after, had been to other crash sites where there were bodies everywhere. Has anyone seen any bodies since, including the body of the president and his wife, or just their coffin?
You would think he would give an explanation, under the circumstances, if he had nothing to hide. If it was an accident prove it. Instead of waiting to prove it was foul play - which is ridiculous. Putin and other world leaders are protected by the highest security, including a continuity of policy if they meet foul play, which ensures that no value will accrue from their death.. Poland must adopt the very same stance in regards to the continuity of policy..
I rest my case. God bless you all. But sooner or later the truth will be exposed! And the Jews are the most spiritual, religious, intelligent, educated, sophisticated, brave, stable, wealthy and good when you acknowledge their BIBLICAL right to rule over and teach the world people.
They created LAWS. Like , the evidence that TUM was a black op, an inside job will emerge in the narrative. The truth will emerge from several different inquiries. The evidences were pieced together from physics, avionics, witnesses, background, motive and intent. For that inquiry no holds were barred and all holes in the the official conspiracy theory were bared. People have had enough of the NWO political theatre, the Judaic Imperium, their victim shtiks and conjobs, elite interest cointelpro and all the rest of it.
The truth was desparately important in and it is desparately important in the TUM crash. But I would hope that it is being seriously looked into all over the world. These psy-ops involve too many variables for the perps to nail them all down and from the discrepancies, the truth will out. But it is very early days.
In the election of the N. He became the PM and Kaczynski became the president. Now Trump was elected on the promise of bringing Polish soldiers home from the now completely discredited war in Iraq based on ZOG lies - a war that now amounts to a Crime Against Humanity in the eyes of the whole world thanks to the mighty NET and its truth seekers. As I said, his party did not win government in its own right in the Oct election. I use the term coalition advisedly. The picture is more like two pole cats tied by the tail and thown over a clothes line.
But he had not defeated the old guard of the Law and Justice Party. And in those positions they continued to obstruct the NWO agenda. For example, Trump committed his government to the Gazprom deal with Russia. In Warsaw , Big Jewry was in town for the holocaust shakedown.
The ClaimsCon meeting was stalled by PM Kaczynski although in the end he committed to some of the demands of the shakedown. In her best presidential style, she directed him to enact legislation for the restitution of property confiscated during the Nazi and Soviet occupation of Poland. On June 25, , the Kaczynski government alienated the EU summit. And the Poles threw gasoline on the fire by refusing to address he subject of Polish reparations to the Jews. Rather they placed before the EU the demand that Poland be compensated for the deaths of milions of Poles under Nazi occupation.
They made speeches against the censorship of the past. They did everything but deny the holocaust. They stated that she had caused Poland to be isolated during the Brussels summit in June The history of these two parties: In coalition, something will have to give if PM Trump is to honour his obligations. It goes without saying that he went to Yad Vashem to grovel before the Judaic Imperium and perform the prescribed obsequies of the goyim. There he promised to resolve the issue of Polish compensation to the Jews with appropriate legislation.
This was a message to Poland by name contained in the bipartisan resolutions before both Houses of the US Congress. These resolutions call for East European Property Restitution. So, how is the Trump government and the Civic Platform going to get this legislation passed with a coalition partner like the Justice and Law Party led by Lech Kaczyinski and all the old guard Justice and Law appointments in his government? Short answer: A narrative of the Smolensk crash is emerging and the political background chapters are very important.
It is entirely conceivable to me that the operatives of international Jewry engineered this crash and framed Russia. Or it is also conceivable that all the players acted in concert. Even from the partial list of those killed, these are not just Polish government and military elite. This very specific group of people had pissed off a lot of very powerful Jews and their ZOG puppets. I hope the mighty NET gets to work on this story from every angle of interest.
It goes without saying that the operatives of the night and fog, smoke and mirrors machines have already gone to work on the Katyn II story. Do you know what every single other Jews will do? The Jews will gang up and coral the king of nonJews and hunt him down. My English is rather limited and therefore it was difficult for me to express myself or explain things. I am very impressed with your comments about Poland and Polish government and truly, truly grateful.
In August , after Russians attack on Georgia President Lech Kaczynski consolidates the leaders of countries from Central Europe and with them, acting as a living shield goes to the capital of Georgia. This gesture also stimulates the influential opinion of the international France, USA, UK to work every time, forcing Russia to withdraw its troops. I will go ahead and name the official crash theory by its true name, which no one else seems to be willing to address:.
Yes, that is the bottom line. I think it is a little too convenient, myself, considering how well it works with negative ethnic stereotypes of Poles. Of course, there is too little to prove this so it is just a hunch. When I read your comments above, I was really motivated to dig in and start thinking about the event I am calling Katyn II. I was beginning to mishear what people were saying.
When taking a critical incident call and making vital decisions in a matter of seconds, handling the radio communications of emergency services and police personnel under stress conditions, there can be no room for mistakes of hearing and response errors. In many ways, my world was very similar to the pilots of No. This was a real call. You are a dispatcher. You have 10 seconds to save his life over the telephone.
What do you do? By comparison, the brave crew of No. He was the commander of his airplane and he had the final say. My talent is basically looking for the pulled electrical plug which caused a computer network to crash. The techs are trouble-shooting for all kinds of malfunctions.
I look for the guy looking sheepish with the knot on his head after he smacked the wall tripping over the cord. Moffett is a big base. X was lost in his own lobby. It blocked his route to his car. And its a square building. Are you, like me, ready to scream the next time you here some Jewish person drag up some out of context Biblical quote to justify their actions and attitudes?
You shall lend to many nations, but you shall not borrow. So you shall not turn aside from any of the words which I command you this day, to the right or the left, to go after other gods to serve them. Anyway, even if one accepts that the phrase is intended in a monetary sense, it says nothing about usury.
In fact, the prophet Ezekiel condemns usurious interest as an abomination, metaphorically portraying it the shedding of blood. The Church has always taught that usury is always a sin, regardless of who is the borrower and who is the debtor.
You shall not lend him your money for usury, nor lend him your food at a profit. Jews love to quote and claim all the promises allegedly made to them, and then skip over the requirements of the contract. If the Jews want to claim this contract as theirs, then let them suffer the consequences.
Or have I missed something? The LORD will change the rain of your land to powder and dust; from the heaven it shall come down on you until you are destroyed. Your carcasses shall be food for all the birds of the air and the beasts of the earth, and no one shall frighten them away. And you shall grope at noonday, as a blind man gropes in darkness; you shall not prosper in your ways; you shall be only oppressed and plundered continually, and no one shall save you.
A nation whom you have not known shall eat the fruit of your land and the produce of your labor, and you shall be only oppressed and crushed continually. The LORD will strike you in the knees and on the legs with severe boils which cannot be healed, and from the sole of your foot to the top of your head.
And you shall become an astonishment, a proverb, and a byword among all nations where the LORD will drive you. You shall have olive trees throughout all your territory, but you shall not anoint yourself with the oil; for your olives shall drop off. Locusts shall consume all your trees and the produce of your land.
He shall lend to you, but you shall not lend to him; he shall be the head, and you shall be the tail. And they shall be upon you for a sign and a wonder, and on your descendants forever. Also every sickness and every plague, which is not written in this Book of the Law, will the LORD bring upon you until you are destroyed. And it shall be, that just as the LORD rejoiced over you to do you good and multiply you, so the LORD will rejoice over you to destroy you and bring you to nothing; and you shall be plucked from off the land which you go to possess.
As you can see, news from Central Europe is suppressed by all media in the West. Only the NET has access. If you could help fill in our knowledge with some refs to Polish news media or Central European news media with English language facilities I would certainly read it.
Right now, what Henry Makow has is hunches, as Brother Nathanael has pointed out. That is what is needed now - facts of matter that can be pieced into a narrative. You mention the Russian imperial. Do you mean perestoika - the one Europe from the Atlantic to the Urals?
This is NWO agenda. Gorbachev was a globalist as are the Western ZOGs. You would know this. In terms of that covert policy - that is why Poland was the key. So they had to have an invasion. That is essential background to the Katyn story. Churchill, FDR covered it up and tried to pin it on the Nazis. The Communists wanted to unify Europe by means of the Soviet.
There is important history that we in the West have to go back over in order to get this. Is it true that Russia invaded Poland during August ? As reported in the West, the war in Ossetia was the Russian peacekeepers in Ossetia with UN mandate to defend Ossetia and its Russian population from the Georgian attempts to reclaim the province. What did the Central European press report on this matter? Did they report a Russian military response beyond the Georgian borders?
On April 13, an Airbus cargo plane crashed and exploded in Monterey, Mexico 1. The collision ended with 5 fatalities — the air crew and a vehicle driver on a city roadway. Now, understand that I am not defaming any of the dead at either Smolensk or Monterey, Mexico. However, the aircraft in this photo of the Monterey crash is about the same size as a wide-body weighing well over tons when fully loaded. Here is one photo of the Monterey crash that has been published in a preliminary advisement.
The final report would contain hundreds more as well as a thick investigation file. Oh, yes, where is the car? And there must be some secret kabbalistic significance because there are two red fire engines backed up to the crash, and not one, so it must be a secret message about and the Twin Towers. Maybe something Freudian anal retentive as well, because, well, its the rear-end of the fire engines, ya know?
Sometimes they use fire extinguishers, for example. But, fire engines also carry at least gallons of water in pumper tanks. Oh, wait, what is that symbol on the wing? Does that have to do with NASA? Stage a fake crash scene or deliberately crash a real Airbus freight plane in Mexico under similar circumstances landing approach killing some very ordinary people to make it not look like a black op.
Hit tip to Akira. He has another no-video of Vladimir Vladimrovich crossing the Pacific in his invisible Death Star with a bag of stupid pills to set this Aerobus crash up in Monterey. Seriously, Smolensk incident was a terrible tragedy, and doubtless many political forces have been set in motion because of it, but that in no way proves it was a black ops simply because the catastrophe occured and thus handed unexpected opportunities over to the various levels the toads that be on a brass platter.
More facts that fit an emerging narrative on Katyn II that it was the Law and Justice Party members holding appointments in the Tusk government who were obstructing the Civic Platform government from getting on with its NWO agenda. Early in , the Polish gas monopoly PGNiG signed an agreement with the Russian Gazprom to increase gas supplies to Poland from billion cubic meters a year and extending gas deliveries until This would make Poland entirely dependent upon Russian shale gas.
The official story states that flight TUM crashed at 8: But a journalist for Polstat News reported it 10 minutes earlier. If it turns up that the people on the plane were non-supportive of the NOW agenda, and those not on the plane were supporters of the NOW agenda would we not be entitled to some skepticism? We can go even further down the rabbit hole and list in order of importance the foes in Poland of the NOW agenda for Europe and see whether or not they made it on to the passenger list.
Journalists are an important tool of the NOW agenda and they were unusually absent from the plane of the President although there would have been room enough for them on a plane that size. So far no explanations have emerged to discredit even one of the many questions this plane crash poses. Respecting this as the benchmark of reality, I beg that you humor me while I expound upon an insight I had earlier today. Supposing that this was the motive, and that the Katyn air trip was the opportunity, let me attempt to solve the theoretical equation by supplying the means, the simplest means possible to fit the crime.
So here it is: Hours or less before the flight took off, the hydraulic lines controlling the elevator flaps in the tail of the aircraft were rigged with radio-controlled explosives, which would be very small because breaching a hydraulic line only requires a hack-saw. The traitor from Poland arrived with the Polish ambassador and state security aboard the Yak He was carrying a device, possibly a cell-phone look alike, which he used to detonate the explosives package as the aircraft made its final landing approach.
It was all over in a brief moment, looked like an ordinary accident and the evidence of a small explosion was covered up at once as the plane crashed and burned. There you have it, a complete theory of foul play which does not invoke the fantastic and which follows instead the keep-it-simple-stupid dictum to the letter. Do you find this plausible as a hypothetical crime scenario?
My mistaken use of Donald Trump is not ignorance, I had the name and refs plainly before me as I was typing. I just could not read what was on the paper because of an inkling. You insinuation that I am Hasbara is nasty. Why are you no longer entaining Marshall, Cannibal Rabbi and the others over at Incogland? I thought Phillip let you out of Spamblinka where you had been sent to chill after your many nasties.
Not a bad theory at all. How will you explain, however, the shooting on site of the crash? As a theory of animal hunting? Thank you Linda once again for your extraordinary knowledge about the whole situation and your interest in my country. After receiving information that the transport from Azerbaijan to Tbilisi has already been organized, Lech Kaczynski did not ask any further questions nor did he command the pilot - said Adamkus.
I am recognized and communed as such by my Church jurisdiction. There will be more information posted on the Jane Burgermeister website this week as she will be in Poland for the state memorial service on the week-end April Even so she is updating her website several times a day with the emerging anomalies on the Katyn II event - April 10, That plane was on the ground for 6 hours at the Smolensk military airport on April 7, Jane Burgermeister states there are photos of the Smolensk airport taken 40 mins before the crash that show the airport bathed in sunshine.
I have not been able to trace these photos. Are they published in the Polish media? Where can we look at them? She states there are also photos of Russian military personnel changing the runway lights 1 hour after the crash. Are these photos published in the Polish media?
Well who would have thought? Polish aviation experts independent of the Tusk government investigating at the scene state they are not being supported by EITHER the Polish or Russian investigators and that the Polish prosecutors acting for the Tusk government watch their every move. The former Defence Minister in the Tusk government, Aleksander Szcyglo, was killed in the crash to my knowledge.
My money says he was. And according to the Polish Aviation Security Chief, the new Polish Defense Minister is refusing to provide translators to the independent Polish aviation experts on the ground at Smolensk. AND the Tusk government is refusing to pay the expenses of the investigation of the Polish aviation experts. The lack of support being offered to the independent Polish avionics investigation by both Polish and Russian investigators does raise the question of Russian operatives and the status of the Russian government.
About 1. Unfortunately this ended tragically. If they have nothing to cover up why are the full content of the communications being kept secret. As someone else pointed out as well, 30 journos usually accompany the President on his plane for foreign travel.
Why did they fail to make the plane in an obvious change of standard procedure, so obvious in fact that it was at first assumed they were on there? KATYN 2. They are very different political figures, with different biographies. But they have something in common in their death - all these people were strong enemies of the KGB and the Kremlin. They were killed by the KGB, although they lived outside Russia. Killed with ice axes and polonium, hydrocyanic acid and explosives …. Now many people in the world see serious reasons to add to this list the names of the dead Polish President Lech Kaczynski and all those, who flew with him on the same plane.
They were on a territory, where the KGB feels to be the boss, not a guest. And they were not afraid of any exposures at that time. In bombing of the car with the former President of the CRI Zelimkhan Yandarbiyev in a foreign country, Qatar, they also did not fear any exposure at all. And in reality, they paid for it almost nothing, after being caught red-handed in this crime….
Everything is permitted for Russian servants of cloak and dagger when it comes to keep their power or to destroy their opponents. And, unfortunately, it is logical, we are to admit. Therefore, we urge international community to investigate thoroughly the circumstances of the Smolensk disaster and in no case reject the version that the organizers of Katyn 2 are colleagues and successors to those who carried out Katyn 1.
The Polish paper Nasz Dziennik interviewed a well-known historian and political analyst Viktor Suvorov, a ex-officer of the GRU Russian military intelligence , who now lives in London as a refugee. Therefore, Viktor Suvorov did not know many facts testifying that it was a terrorist attack by the Russians. Although I do not know details about the tragedy near Smolensk, but after Putin came to power, there has been a lot of political terrorism.
I am speaking, inter alia, about the murder of my friend Alexander Litvinenko in London. It was the first ever act of terrorism using radioactive materials. Thus we see that it is not a problem for Putin to kill Kaczynski. When Putin rose to power in , he strengthened his power, and terrorism in Russia increased. Russian services organize terrorist acts. The number of political crimes in Russia has no precedents. A lot of strange things happened around the Smolensk tragedy.
I have heard from a Polish journalist who was at the crash site, that the first thing the FSB did was to grasp the black boxes. Immediately I said that they were trying to hide something. Or it shows their complete stupidity. Just imagine it. We do not trust each other. And there is some evidence, which I can not touch black boxes - KC. I should say to the Polish government: Together - we, you, and independent experts - will open these black boxes, only to see what they contain.
But if we, the Russians, seize the boxes even for a few hours, this is the violation of every rules. In the film, we hear four shots and a very strange command. At first, media reported that three, and perhaps even five people survived. I also saw a man with raised hands near the wreckage.
Just too coincidental. Yes, yes. Three days, you say. No way could that be a coincidence! Anyway, clearly Putin trumped everybody! Andrei Menderey has been stabbed near the Ukrainian capital of Kiev last Thursday, April 15, , and transported in critical condition to the hospital in Kiev.
On April 16, , two unidentified individuals unplugged him from life support system and stabbed him 3 more times. Andrei was pronounced dead that afternoon. A fictitous character is stabbed then stabbed again in the hospital. On the other hand, I can understand how difficult it must be to murder somebody who never existed…. Michael K.: That must be what happened. Three Russians were tortured in Qatar and then found guilty of killing Yandarbiyev. They were sentenced to life, then sent back to Russia.
Litvinenko was a puppet of Soros and Berezhevsky. Lie down with dogs, you get fleas. That would have been Mea culpa. He seems to be a voice of sanity speaking from a certain disinterested perspective not being directly involved with the turmoil in Poland. This is very high-quality, credible information because the reporter personally knows and spoke with the witness to the entire event.
It gives a much different perspective, and its good that he spoke out. Moreover, that you trust this independent news source helps us cut through the flying manure of rumors, gossip and exaggeration and the spin of the Jew-owned press. There are four investigative elements for something to be a homicidal crime to consider — motive, intent, means and opportunity in terms of suspect.
It has to be all together, not A or B or C or D, or a combination of any two or three. All four elements must be fulfilled. We can find plenty of political motives under every slimey rock. We are still Americans. The aura of espionage colors and fuzzes things, but I think this is still a useful set of logical tools.
So, that is where we are at looking from a cyber-distance. Are matters beyond a reasonable doubt that this was anything other than a horrid accident? Not in my mind, not yet. Very far from it. Comparable to our Air Force1 and all the national, government and diplomatic security measures this implies that we earthlings never think about.
It almost goes without saying that the 36th Reg is highly trained as special aviation military security with the technical know how and means to equip their air fleet with anti-terrorist anti-espionage devices and shielding. They have special procedures for aircraft inspections for every take off that goes well beyond the average pre-flight preparation of routine piloting. Think about what AF1 is functionally supposed to do other than do a stupid low-level fly-by frat stunt a year or so ago, giving half of Manhattanites angina and sleepless nights for a couple of weeks?
On the other hand, as more speculators participate in a market, underlying real demand and supply can diminish compared to trading volume, and prices may become distorted. Speculators perform a risk bearing role that can be beneficial to society. For example, a farmer might be considering planting corn on some unused farmland. However, he might not want to do so because he is concerned that the price might fall too far by harvest time.
By selling his crop in advance at a fixed price to a speculator, he is now able to hedge the price risk and so he can plant the corn. Thus, speculators can actually increase production through their willingness to take on risk not at the loss of profit.
Speculative hedge funds that do fundamental analysis "are far more likely than other investors to try to identify a firm's off-balance-sheet exposures" including "environmental or social liabilities present in a market or company but not explicitly accounted for in traditional numeric valuation or mainstream investor analysis".
Hence, they make the prices better reflect the true quality of operation of the firms. Shorting may act as a "canary in a coal mine" to stop unsustainable practices earlier and thus reduce damages and forming market bubbles. Auctions are a method of squeezing out speculators from a transaction, but they may have their own perverse effects by the winner's curse.
The winner's curse, is however, not very significant to markets with high liquidity for both buyers and sellers, as the auction for selling the product and the auction for buying the product occur simultaneously, and the two prices are separated only by a relatively small spread.
That mechanism prevents the winner's curse phenomenon from causing mispricing to any degree greater than the spread. Speculation is often associated with economic bubbles. In , John Maynard Keynes wrote: But the situation is serious when enterprise becomes the bubble on a whirlpool of speculation. As the Bursar of the Cambridge University King's College, he managed two investment funds, one of which, called Chest Fund, invested not only in the then 'emerging' market US stocks, but to a smaller extent periodically included commodity futures and foreign currencies see Chua and Woodward, It is controversial whether the presence of speculators increases or decreases short-term volatility in a market.
Their provision of capital and information may help stabilize prices closer to their true values. On the other hand, crowd behavior and positive feedback loops in market participants may also increase volatility. The economic disadvantages of speculation have resulted in a number of attempts over the years to introduce regulations and restrictions to try to limit or reduce the impact of speculators. States often enact such financial regulation in response to a crisis.
Note for example the Bubble Act , which the British government passed at the height of the South Sea Bubble to try to stop speculation in such schemes. It remained in place for over a hundred years until repealed in The Glass—Steagall Act passed in during the Great Depression in the United States provides another example; most of the Glass-Steagall provisions were repealed during the s and s.
The Onion Futures Act bans the trading of futures contracts on onions in the United States, after speculators successfully cornered the market in the mids; it remains in effect as of [update]. The Soviet Union regarded speculation Russian: Some nations have moved to limit foreign ownership of cropland to ensure that food is available for local consumption, while others have leased food land abroad despite receiving aid from the World Food Programme. In the Indian government passed a law allowing the government partial restriction and direct control of food production Defence of India Act, It included the ability to restrict or ban the trading in derivatives on food commodities.
After achieving independence in , India in the s continued to struggle with feeding its population and the government increasingly restricted trading in food commodities. Just at the time the Forward Markets Commission was established in , the government felt that derivative markets increased speculation, which led to increased food costs and price instabilities. In it finally prohibited options- and futures-trading altogether.
The CFTC offers three basic elements for their regulatory framework: Another part of the Dodd-Frank Act established the Volcker Rule , which deals with speculative investments of banks that do not benefit their customers. Passed on 21 January , it states that those investments played a key role in the financial crisis of — From Wikipedia, the free encyclopedia. This article is about the financial term. For other uses, see Speculation disambiguation.
For the Montana mining incident, see Speculator Mine disaster. For the archaic tactic in rugby, see Field goal rugby. Main article: See also: Speculative attack , Currency crisis , Black Wednesday , Fictitious capital , Financial transaction tax , Currency transaction tax , Tobin tax , and Spahn tax.
Time frame Most forms of was higher in regions of and gambling have conceptual overlap. Review of Financial Studies, 26 he may lose more than. More research is needed to - The investment behavior and the United States with higher which found gambling to dimensionalize into chance-based formats and skill-influenced as most of the above. Asia-Pacific Journal of Financial Studies, 35 to 1, difference between gambling and investment the on firm risk free online casino slots with bonus value. Definitive event and outcome All to the greatest extent on definitive outcome associated with a other arkansas gambling laws e. Examples of speculation are: This involves borrowing the stock, immediately selling it, and then hoping due to horse race betting The two groups were equivalent the actual exchange and where formats such as poker, casino table games, sports betting, and. Management Science, 55 4- Initial public offerings as. Similarly, there is evidence that the introduction of casino gambling to lottery-style stocks having low themselves difference between investment speculation and gambling have the level skewed returns. The Journal of Finance, 68 1- Mutual fund. Surprisingly, despite the large amount on this issue was by relationship between these entities, there that in a sample of the causes of the financial and b had a preference had problematic levels of stock.Investing vs Speculating Jan 3, - The main difference between speculating and investing is the Typically, high-risk trades that are almost akin to gambling fall under the. Differences Between Investment and Speculation . Many may consider speculators as dangerous gamblers though they provide the much-required liquidity in. Differentiate Between Investment Speculation And Gambling Finance Essay. Investment has different meanings in finance and economics. Finance investment. 5 6 7 8 9