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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.
Definition of speculate. speculated. ; speculating. intransitive verb. 1a : to meditate on or ponder a subject : reflectb : to review something idly or casually and often inconclusively. 2 : to assume a business risk in hope of gain; especially : to buy or sell in expectation of profiting from market fluctuations. transitive verb.