JAMB Commerce 2006 Question 20

Question 20

Stock Exchange

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

  1. A.speculation
  2. B.forecasting
  3. C.expectation
  4. D.projection.
Show the answer and explanation

Answer: A (speculation)

Explanation

Speculation is buying or selling shares hoping to profit from future price changes.