• Card 98 / 100: In common discussions, what is the difference between an investor and a speculator in stocks?

    Answer:
    People typically think of an investor as someone who intends to hold a stock for a long time either as part of a general strategy or because the company seems dependable. A speculator, on the other hand, is someone who looks to get in and out relatively quickly, after an anticipated price move. Sample Partial Credit Answer A speculator thinks the original price of the stock is wrong.

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Capitalism: The Market Economy

Access: Public Peer Review

Attribution:  Dr. Robert P. Murphy, Lessons for the Young Economist. (Mises Institute), http://mises.org/document/6215/Lessons-for-the-Young-Economist (Accessed 04 April, 2014). License: Creative Commons BY
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