What context can I use each word in?
Learn when and how to use these words with these examples!
investment
Example
I made an investment in the stock market and earned a good return. [investment: noun]
Example
She is investing in her education to improve her career prospects. [investing: gerund or present participle]
speculation
Example
He engaged in speculation by buying and selling stocks rapidly. [speculation: noun]
Example
The company's decision to invest in new technology was based on speculation about future demand. [speculation: noun]
Good things to know
Which word is more common?
Investment is a more common term than speculation in everyday language, as it is a more widely accepted and established practice. Speculation is often associated with a higher level of risk and uncertainty, and may be viewed as a more risky or speculative activity.
What’s the difference in the tone of formality between investment and speculation?
Investment is generally considered a more formal term than speculation, as it is often associated with professional financial planning and analysis. Speculation may be viewed as a more informal or casual term, associated with risk-taking and gambling.
