What does “speculating on the stock market” mean?
I’m learning about the Great Depression in my US History class, and my teacher said that one of the causes of the Great Depression was people speculating on the stock market. I tried going on google, but I ended up getting more confused. English isn’t my first language so I don’t really know what that means. Can someone explain in simple English please? Thank you so much!
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Speculating the way your teacher meant it, means they were gambling unreasonably on the stock market.
The stock market is risky anyway, but an investor can carefully invest his or her money after research and have less risk and a better chance of making money. People that speculate are taking a big risk in hopes that it will pay off with a big profit. Sometimes, it doesnt work out.
buying risky stocks hoping to get lucky
Speculators are investors who merely guessing at with direction stock market is going to go. Perhaps this animated video may help you, it's a quick summary of The Intelligent Investor at witch the difference between investing and speculation is well defined.