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Economic Definition of speculation. Defined. Term speculation Definition: Buying an asset with the intent of reselling it later at a higher price. The purpose of speculation is simply to buy low today and sell high tomorrow. Those who engage in speculation have no reason for buying the asset, other than resale at a later time.
An informal term for a large amount of money. 2. A highly polemical term for sound money. 3. In the bond market, a slang term for price movements caused by fundamentals without regard for speculation. For example, if speculators buy bonds because risk has declined, and afterward prices rise (and yields fall), the price movement is said to have been caused by real money. Farlex Financial Dictionary.