Does this answer make sense?

Here is the question:

What is speculation in the context of financial markets? Describe at least three examples of speculation from Stanford's text, citing from the text as you go. Do you think that there ought to be greater regulatory limits placed on speculative activities? Limits on 'share buy-backs' or stock-options for executives and board directors? Be sure to explain your position in terms of the social consequences of speculation. You are welcome, but not required, to use any contemporary examples that are relevant to this question.

My response:

There have been a variety of perspectives provided in the reading regarding speculation within financial institutions. The companies try to balance the needs across multiple sources of funding for their investments, not just banking institutions, even though they have a wide range of financial resources available to them. The financial institutions allow for perception from both the public and the private sector to be perceived differently. Each borrowers and lenders continue having a relationship.

Whenever there are different rules and regulations governing the financial institutions, there will be different ways to do things. Finance has influenced how people view things in life in a unique way. In the text, it mentions how. In the text it mentions how "Investors simply buy an asset, and then hope that its price rises, allowing them to sell it for more than they paid"(253) as such, speculation could be viewed as an act of conducting a financial transaction that has a substantial risk of loss but also provides the expectation of a significant gain or another major benefit.Using real-life examples is a great way to better understand financial institutions, and it will help you to better understand the topic. Consequently, with that being said some examples that could provide some perspective would be when the article mentions "It is guises by the -old adage:"Buy low, and sell high" (253) In speculative markets, that might mean engaging in a financial transaction that entails the risk of substantial losses, but also the prospect of the possibility of a significant gain or other major value. It could also mean investing in speculative markets. The readings mention another example of how this may play out "Mutual funds are composed of the shares of many different companies, allowing an investor to efficiency buy a small bit of each of them."254) this would bring up the conversation about significant gain and low risk factors. Lastly the example of speculation that was mentioned throughout the reading was underlying the ideas that " Any asset can be bought and sold for speculative purposes: including tangible things like real estate, fine art, and commodities"(253) this final example could present the idea on speculation within the financial market. It could show how the process may be played out. When reading about speculation the conversation on bankrupty and investing the topics on companies and how they took place throughout speculative activities.

In the future, the idea of speculative activity will be placed on the company's transactions. The formal idea is to have greater regulatory restrictions on speculation. The conversation about if regulatory limits would be placed there would be less speculative activities would be rather unlikely because of how stability is not something that they gravitate towards. This could represent how it limits their capabilities for the stock markets. I believe there will be no regulatory restrictions on speculation because " speculators can't tolerate is stability" which may represent how confusing the idea of speculation is in public and may not be possible in private Tolerate speculative ideas.