Speculation is a financing term that refers to any economic operation where the initial return (principal), in addition to interest on the principal, is not guaranteed. Speculation usually involves the transfer of funds to assets, capital or debt, without any in-depth analysis or action that entails a high risk of non-repayment of the initial investment. This formal definition of the term "speculation" appears in Graham and David's 1934 book, "Security Analysis," and is the opposite of "investment" - a term that defines financing action that, after thorough analysis, guarantees repayment of the principal together with interest. Provides.