Investing widely without regard to risk is called: A. Insider trading B. Selling short C. Buying on margin D. Speculation

The correct answer is D. Speculation

Explanation:

Speculation differs from regular investment because in speculation the risk is higher, this means, investors do not have evidence they will recover their inversion or earn a profit, although they hope the market fluctuates and they will be benefited. Indeed, due to fluctuations in the market speculators can have higher profits than regular investors but the risk of loss is higher. An example of speculating, includes investing in companies or business that can either grow potentially or bankrupt. Thus, investing widely without regard to risk is speculation.

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