S.No
|
Investment
|
Speculation
|
| 1. |
Investment is the process of commitment of funds at present with the expectations of some positive rate of return in future. |
Speculation is the process of using money with an expectation of abnormal rate of return instantly in a short period of time. |
| 2. |
Investment is generally done for long period of time. |
Speculation is done for short period of time. |
| 3. |
Rate of risk is generally lower in case of investment than speculation. |
Rate of risk is higher in case of speculation than investment. |
| 4. |
There is stability of earnings in case of investment . |
There is no stability of earnings in case of speculation. |
| 5. |
An investor user his/her funds during the time of speculation. |
A speculator uses borrowed funds during the time of specultion. |
| 6. |
Investment is done very carefully analysing the performance of the company. |
Speculation is done on the basis of rumors ,hearsay,technical chart and market psychology. |
| 7. |
The behaviour of people that involve in investment is generally conservative and cautious. |
The behaviour of people that involve in speculation is daring and careless. |
Difference between Investment and Speculation
