Speculative Risk

Filed Under » ,
Dictionary Says

Definition of 'Speculative Risk'

A category of risk that, when undertaken, results in an uncertain degree of gain or loss. All speculative risks are made as conscious choices and are not just a result of uncontrollable circumstances.

Speculative risk is the opposite of pure risk.
Investopedia Says

Investopedia explains 'Speculative Risk'

By definition, almost all investment activities involve speculative risks, as an investor has no idea whether an investment will be a blazing success or an utter failure. However, some investments are more speculative than others. For example, investing in government bonds has much less speculative risk than investing in junk bonds, because government bonds have a much lower risk of default. 

Related Definitions

Search results for

'Speculative Risk'

  • Series 7 Study Guide - Risk and Tax Considerations - Stock ...

    http://www.investopedia.com/exam-guide/series-7/investment-risk-tax-considerations/stock-classification.asp
    ... stocks might be thinly traded and might not even be listed on an exchange, so liquidity
    risk is a consideration. In addition, speculative stocks are sensitive ...

  • 5 Popular Portfolio Types

    http://www.investopedia.com/articles/basics/11/5-popular-portfolio-types.asp
    ... closest to a pure gamble. A speculative portfolio presents more risk than
    any others discussed here. Finance gurus suggest that a ...

  • Series 7 Study Guide - Debt Securities - Bond Ratings ...

    http://www.investopedia.com/exam-guide/series-7/debt-securities/bond-ratings.asp
    ... Ba, BB, Junk, Speculative, High Risk. B, B, Junk, Very Speculative, Higher Risk.
    Caa, CCC, Junk, Default Possible, Higher Risk. Ca, CC, Junk, Default Probable, ...

  • Understanding Forex Risk Management

    http://www.investopedia.com/articles/forex/10/forex-risk-management.asp
    ... with speculating, you have some kind of control over your risk, whereas with ... are
    three basic ways to take a bet: Martingale, anti-Martingale or speculative. ...

  • 5 Ways To Double Your Investment Slideshow | Investopedia

    http://www.investopedia.com/slide-show/5--ways-to-double-investment/speculative-way.aspx
    ... the Importance of Reinvestment Income and Reinvestment Risk section of our CFA Level
    1 Study Guide to learn more about this concept.). 4. The Speculative Way. ...

  • Are high-yield bonds better investments than low-yield bonds?

    http://www.investopedia.com/ask/answers/06/highyieldlowyieldbonds.asp
    ... Bonds rated 'BB' or lower on the bond rating scale are considered lower grade (junk
    or speculative) bonds and carry a larger amount of default risk than a bond ...

  • 5 Ways To Double Your Investment

    http://www.investopedia.com/articles/stocks/09/five-ways-double-investment.asp
    ... the Importance of Reinvestment Income and Reinvestment Risk section of our CFA Level
    1 Study Guide to learn more about this concept.) The Speculative Way While ...

  • Options Basics: Introduction | Investopedia

    http://www.investopedia.com/university/options/
    ... everyone. Option trading can be speculative in nature and carry substantial
    risk of loss. Only invest with risk capital. Despite ...

  • Options Basics: Introduction | Investopedia

    http://www.investopedia.com/university/options/default.asp
    ... everyone. Option trading can be speculative in nature and carry substantial
    risk of loss. Only invest with risk capital. Despite ...

  • Options Basics: Introduction | Investopedia

    http://www.investopedia.com/university/options
    ... everyone. Option trading can be speculative in nature and carry substantial
    risk of loss. Only invest with risk capital. Despite ...

Related Articles

Partner Links