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TeachMeFinance.com - explain Investment speculation historic definition... Investment speculation -- Is when a person buys outright a stock or a bond, primarily to obtain the dividend or interest paid on it, but also with the intention of selling should there be a material advance in the price of the security. Likewise, the term applies when a person buys outright a stock that is not paying dividends, but which the buyer expects will in time pay dividends, with a resultant improvement in the price of the stock ; or the term applies when a person buys outright a bond that is not paying interest (as an income bond), but which the buyer expects will in time pay interest, with a resultant improvement in the price of the bond. About the author Mark McCracken Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English". Copyright © 2007 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.