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Mattie Frost
21 February, 11:11
Why do people take speculative risks?
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Danica Ewing
21 February, 12:00
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All human activity involves a risk, since the activity exempted from it represents total immobility; and even so, if we all stayed at home doing nothing and stopped all productive activity, there would still be a risk
In the speculative risk always seeks to make a profit, being exposed to a loss.
For example, many insurance companies are now companies that are listed on the stock exchange. This means that the shareholders are taking a speculative risk that is ultimately derived from the execution of the company.
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