The Role of Stock Market Speculation: INTRODUCTION
Strong financial convulsions that have occurred regularly since the stock market crash of 1987 (European devaluations, Baring Brothers, insolvency in Japan, Mexican tequila, Asian crisis) have popularized the interpretation of the crisis as a phenomenon primarily speculative.
INTRODUCTION
Based on the critique of “swelling of the bubble,” he calls for “discipline the financial capital” and “international control speculation.” The aim is to prevent the “healthy industrial capital” continue drowned by the “financial idleness” of the “casino economy.” It is perfectly true that financial hypertrophy has grown over the past two decades due to the crisis and the consequent migration of capital to speculative activity. But the ultimate in this field is not the magnitude of the sums at stake, as primarily private and sophisticated nature are assuming all operations. “
The above by Claudio Katz in their work as study today capitalism is the basis for initiating this work, which is related to speculation, specifically financial speculation, which unquestionably is a phenomenon inherent in the financial markets.
Etymologically, the concept of speculation comes from the Latin word speculum means mirror, by extension, this term applies to the concept of image, ie the “no object”, its reflection, the non real, the false. In what looks like but ultimately “not.”
In the area of speculation the economy is the exercise of any economic activity aimed at making a profit only, without any input from any product or service that increases the wealth of society. Speculation is nothing that the falsification of the material basis of life-sustaining society: the production process.
However, as noted earlier in this paper is primarily financial speculation, ie the action that stands to gain in the financial market provided by the differences in contributions, based on the positions taken by the expected trend.
credit to: Lic. Eyelin Bello Caballero, MSc. Yaicel Rangel Díaz and MSc.Eimyn Rizo Lorenzo
Source: www.gestiopolis.com/finanzas-contaduria/especulaciones-en-los-mercados-financieros.htm