Trading on the stock exchange in anticipation of price change in the market value of shares is?

Assessment: JAMB UTME - Commerce - 2006 Subject: Commerce

Question 1 Report

Trading on the stock exchange in anticipation of price change in the market value of shares is?
Answer Details
Trading on the stock exchange in anticipation of price change in the market value of shares is called speculation. In other words, it involves buying or selling shares with the hope of making a profit from price movements in the future. Traders who engage in speculation rely on market information, economic indicators, and technical analysis to make informed decisions about buying and selling shares. The goal of speculation is to make a profit from the fluctuations in share prices, rather than holding on to the shares for long-term investment.

Download The App On Google Playstore

Everything you need to excel in your exams

Green Bridge CBT Mobile App
Personalized AI Learning Chat Assistant
200,000+ Exam Questions Across IGCSE, JAMB, WAEC & NECO
Over 3,900 Lesson Notes
Offline Support - Learn Anytime, Anywhere
Green Bridge Timetable
Literature Summaries & Potential Questions
Track Your Performance & Progress
In-depth Explanations for Comprehensive Learning