News By/Courtesy: G Kusuma | 23 Jan 2021 14:51pm IST

HIGHLIGHTS

  • Every investor in the network economy is a speculator
  • Speculators are divided into bull, stag, lame duck, bear
  • small stocks and pharma industry growth

Stock speculators are persons investing for redefining their profit and don't hold on to the securities for a longer period of time. Every investor in the network economy is a speculator. These speculations span over varied kinds of transactions such as option dealings, arbitrage, wash sales, blank transfer, etc[i], a speculator who wishes to gain over the stocks on their outlay with an optimistic view is a bull speculator and he shall gain the profit over the difference in the purchase of price and sale, the stocks that such a speculator deals in are called bullish stocks. On the other hand, the bear speculators possess a negative view towards the stocks and hence expect a price fall, on the fall they gain the difference of the purchase and sale price. When the expectation of a bear speculator fails he/she shall be called a lame duck. A stag is a cautious investor who tries to set aside risk and conduct trading on IPOs or initial public offers, to reap a profit on the growth of the company. The investments happen based on predictive scores of the respective speculators, for instance, a gain triggering a sale and a drop leading for purchase by a speculator. 2020 had a drastic impact on the stock markets it also lead to the growth of Pharma stocks and profits. In the following year of 2021, the sectors such as real estate, logistics, infrastructure, Pharma, Insurance, Auto, FMCG, AMC, banking, power, etc will be blooming in nature[ii], as per RBI the economy of the country will normalize and return with a recovery in mid-2021, while few other predictions rely on a U-shaped trajectory of recovery in 2022. 2021 is also considered as a year for small capital or smaller stocks which for a long time have been observed as risky investments, these stocks simply referred to as penny stocks can outperform the other at least by 30 percent was speculated. With growth, the focus drifts on sustainability, the long term sustenance forms as an assurance for the investors to finance for different ventures, and also start-ups stand as an effective place for investments offering the best of opportunities. "The idea that the future is unpredictable is undermined every day by the ease with which the past is explained"[iii] Thereby, the best why of speculations and investment being the in-depth study of past and examination, analysis of stocks in the forthcoming year. 

 

This Article Does Not Intend To Hurt The Sentiments Of Any Individual Community, Sect, Or Religion Etcetera. This Article Is Based Purely On The Authors Personal Views And Opinions In The Exercise Of The Fundamental Right Guaranteed Under Article 19(1)(A) And Other Related Laws Being Force In India, For The Time Being. Further, despite all efforts that have been made to ensure the accuracy and correctness of the information published, 5thVoice.News shall not be responsible for any errors caused due to human error or otherwise.

Section Editor: Pushpit Singh | 24 Jan 2021 13:44pm IST


Tags : #kinds of speculations #stock market #developments in 2021

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