1. A
PRESENTATION ON
SPECULATION,TYPES OF
SPECULATOR,FUNCTIONS &
THEIR ROLE IN STOCK MARKET
Presented to, Presented by,
Prof. R.K.RAUL Janmajit Debnath(13)
HOD,JNSMS Sanjib Paul(18)
Ishan Dutta(26)
ASSAM UNIVERSITY
Mritunjoy Deb(28)
Biplab Dey(34)
Dhruba Debnath(43)
Ratnadeep Paul(45)

3. Introduction
Speculation is a financial action that does not
provide safety of initial investment along with
the return on the principal sum.

4. Speculation typically involves
the lending of money for the
purchase of assets, equity or
debt but in a manner that has
not been given thorough
analysis or is deemed to have
low margin of safety or a
significant risk of the loss of the
principal investment.

5. In simple words, Speculation is
the activity of Speculators.
The activity of the speculators
leads to taking position in the
stock market for a short period
of time.

6. Speculation vs Investment
The term “speculation” contracts
with the term “investment”, which
is a financial operation that, upon
thorough analysis, promises
safety of principal and a
satisfactory return.

7. Basis Investor Speculator
Planning Horizon Longer planning horizon Shorter planning horizon
Risk Disposition Not willing to assume Willing to assume high
more than moderate risk risk
Return Modest rate of return High rate of return
Expectation
Basis for decision Fundamental Hearsay,technical
factors,careful charts,market
evaluation of the psychology
prospects of the firm
Leverage Uses his own funds & Resorts to borrowing
eschews borrowed funds