Investment

speculation or speculative investment. Is when a person buys outright a stock or a bond, primarily to obtain the dividend or interest paid on it, but also with the intention of selling should there be a material advance in the price of the security. Likewise, the term applies when a person buys outright a stock that is not paying dividends, but which the buyer expects will in time pay dividends, with a resultant improvement in the price of the stock; or the term applies when a person buys: outright a bond that is not paying interest (as an income bond), but which the buyer expects will in time pay interest, with a resultant improvement in the price of the bond.