Example of Speculation, Throughout periods while the activities of speculators raise the

Example of Speculation

Throughout periods while the activities of speculators raise the volatility and average level of prices, classical speculators are most probable to: (1) gain profits by buying high and selling low. (2) reduces the risks to other firms of doing business. (3) raise high prices by boosting supply while demands are low. (4) experience losses and go bankrupt. (5) decrease low prices by boosting demand while supply is growing.

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