Speculation Legal Definition

Speculation is a legal basis for withholding witness testimony for reasons similar to argumentative objection – because the evidence is not considered reliable or factual. A witness` testimony is limited to personal knowledge of events (estimates are allowed, but most opinions are not). The speculation is even worse. It`s comparable to rates – and it`s not allowed. In 1935, the Indian government passed a law allowing it to partially restrict and directly control food production (Defence of India Act, 1935). This included the possibility of restricting or prohibiting trade in derived products on food. After independence in 1947, India continued to struggle to feed its population in the 1950s and the government increasingly restricted the food trade. Just as the Forward Markets Commission was established in 1953, the government believed that derivatives markets increased speculation, leading to higher food costs and price volatility. In 1953, he finally banned options and futures altogether. [20] The restrictions were not lifted until the 1980s.

A common reason for objections that call for speculation (or speculative objections) in court is when a party asks a witness to interpret another person`s state of mind. No one can read someone else`s mind. Speculation is often associated with economic bubbles. [10] A bubble occurs when the price of an asset significantly exceeds its intrinsic value,[11] although not all bubbles occur due to speculation. [12] Speculative bubbles are characterized by rapid market expansion, fueled by word-of-mouth feedback loops, as initial increases in asset prices attract new buyers and generate additional inflation. [13] The growth of the bubble is followed by a sudden collapse, fueled by the same phenomenon. [11] [14] Speculative bubbles are essentially social epidemics, whose contagion is mediated by the structure of the market. [14] Some economists link asset price movements within a bubble to economic fundamentals such as cash flows and discount rates. [15] In 1936, John Maynard Keynes wrote: “Speculators cannot do anything wrong like bubbles on a steady flow of business.

But the situation is serious when companies become a bubble in a whirlwind of speculation. (1936:159)”[16] Keynes himself enjoyed speculation to the fullest and directed an early precursor to a hedge fund. As a trustee of King`s College, University of Cambridge, he managed two mutual funds, one of which, called the Chest Fund, not only invested in then-“emerging” U.S. equities, but to a lesser extent regularly included commodity futures and foreign currencies (see Chua and Woodward, 1983). His fund was profitable almost every year, averaging 13% per year, even during the Great Depression, thanks to very modern investment strategies that included diversification between markets (he invested in stocks, commodities and currencies) and short selling (selling borrowed stocks or futures contracts to profit from falling prices). which Keynes advocated in his 1933 report according to the principles of successful investment: “A balanced investment position. and, if possible, the opposite risks.” [17] This is a second example of a speculative objection where the party may rephrase a question to obtain the desired statement. According to Benjamin Graham in The Intelligent Investor, the prototypical defensive investor is “. which is primarily concerned with security and non-interference.” He acknowledges, however, that “. Some speculation is necessary and inevitable, because in many common stock situations there are significant profit and loss opportunities, and the risks incurred must be assumed by someone. Therefore, many long-term investors, even those who have been buying and holding for decades, can be classified as speculators, with the exception of a few who are primarily motivated by income or security of capital, rather than selling at a profit. [5] The perception of what distinguishes investment from speculation and speculation from excessive speculation varies considerably among experts, legislators and academics.

Some sources point out that speculation is simply a riskier form of investment. Others define speculation more narrowly than positions that are not marked as hedging. [2] The U.S. Commodity Futures Trading Commission defines a speculator as “a trader who does not hedge, but acts with the aim of making profits by successfully anticipating price movements.” [3] The Agency stresses that speculators perform important market functions, but defines excessive speculation as detrimental to the proper functioning of futures markets. [4] Suggestions made in the past to try to limit speculation – but never implemented – included: We certainly would not want a jury to decide a case based on someone`s presumption. This is one of the main reasons we have rules of evidence: to establish a fair trial based on facts, not speculation.