What are speculative shares?

Question

What are speculative shares?

Answer 1

Anything you would not want to keep for a year or more.

Actually, I think the way most people use the term, they commonly feel that if it weren't for people buying it in hopes it would go up, no one would buy it.

I bought into a company that supposedly had some underwater technology that they were going to sell for deep water oil drilling that was booming back then. I didn't, fortunately, put more than a few bucks on it, but now a penny would buy you a boatload of the stock. (They sold the technology, btw, to settle some of their debts, so they just have part interest in a couple dozen oil wells in Texas).

There are going concerns and others that remind one of a Hollywood starlet who obviously isn't wearing a bra but you wonder what is holding those oversized things up, these are speculations.

Answer 2

Basically they are shares in companies that you are "speculating" that something will change to make them more valuable like their new drug will cure cancer or they will strike oil, gold, silver, invent a better mousetrap, or whatever.

Answer 3

A stock with a weak or no financial history

Answer 4

I agree partually with the 1st responder.  Certainly those are one class of speculative shares.   But speculative shares can also be of a different type also.   Speculators are always looking for home run stocks.  Any company that they think might make a lot of money in the future but which really shows no real basis or perhaps a hypothetical basis for such a future.  Global Crossing was such a company.  Today we have First Solar and many others also.  Heck Ford and GM fall into that category.