What is the act of overinvesting in hopes of a big return? a. overspeculating b. market top c. going long d. over bearish

A. overspeculating

Explanation:

In economics, speculation, according to Nicholas Kaldor, consists of the purchase (or sale) of goods with a view to their subsequent resale (repurchase), when the reason for such action is the expectation of a change in the prices affected with respect to the price. dominant and not the gain derived from its use, or any type of transformation effected on these or of the transfer between different markets.

A speculative operation seeks not to enjoy the good or service involved, but to obtain a benefit from the fluctuations or its price based on the theory of arbitrage. In a broad sense, any form of investment that entails a medium is speculative; however, the term is usually applied to that investment that does not entail any kind of commitment to the management of the assets in which it is invested, and is limited to the movement of capital (financial market), usually in the short or medium term.

Speculation is based on foresight and perception, so that the speculator can also make mistakes if he does not correctly foresee the evolution of future prices, so he will have to sell cheap something that he bought dearly. The speculative market therefore rewards those who know how to foresee.

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