A method of buying in anticipation of price fluctuation in the commodity market is?

Assessment: WAEC SSCE - Commerce - 2018 (Objective) Subject: Commerce

Question 1 Report

A method of buying in anticipation of price fluctuation in the commodity market is?

Answer Details
Speculation is a method of buying in anticipation of price fluctuation in the commodity market. In other words, a speculator buys an asset (such as a commodity) with the hope that its price will go up in the future. If the price does indeed increase, the speculator can sell the asset for a profit. However, if the price decreases, the speculator may incur a loss. Speculation is a high-risk, high-reward strategy that is used by individuals and institutions who have a strong understanding of the market and believe they can predict future price movements.

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