Market Speculation

Speculation can be on any category, from goods, consumer goods, capital backing , currencies , real estate , etc. . To perform the necessary speculation that the prices of such goods present variations in time or in space, also the market is unable to regulate itself.

Speculation requires knowledge and foresight , therefore, takes place more easily in markets that have a sufficient degree of organization , such as , commodity exchanges and securities . Speculation can be exercised for immediate recruitment or forward contracting



If asked on the street what the ethical standards of those engaged in finance, the grade obtained would be quite low. What can be the cause of the financial actors have bad reputation ? Perhaps due to the complexity of financial transactions , making it difficult to distinguish between a correct action and a fraud. However, the noted expert on securities matters, Burton Malkiel says ethical standards in the stock market are very high, higher than in other professions.

Probably the ethical problems that arise in other economic activities are more frequent and more complex than those raised in the financial world . Just as many people have suffered significant losses in the markets and prefer to blame speculators ; or maybe the attitude of the media



In the financial world , as elsewhere , there are ethical and unethical attitudes, so it is good to reflect on ethics in financial activity , in particular , on speculation.

So you might think that speculation is unnecessary , however , this idea is false as speculation performs several functions in the securities markets , which can be summarized as follows :

Improve efficiency by getting more correct prices.
Taking risks , getting more complete markets .
Give liquidity.
The ethical evaluation of speculation positively graded activities that promote the common good, using speculation to achieve the functions that a market economy will reserve .

It will, therefore, lawful analyze existing data to try to predict future prices , buying what is considered undervalued and vice versa. Ethics speculator will look when their performance improvement is derived for the whole society , even if individual winners and losers