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WAEC Commerce 2016 Question 2

Question 2

Stock Exchange

Buying and selling stocks in the stock exchange in anticipation of changes in the share prices is

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

Answer: D (speculation.)

Explanation

Speculation is dealing in shares expecting prices to change in order to make a profit.