SPECULATION ON THE EXCHANGE AND THE PROFITS OF SPECU LATION
Speculation in the narrower sense, on the exchanges or in prices, takes advantage of the constant fluctuations of the price of commodities dealt in on the exchanges or in the great real-estate markets. The speculator endeavors to foresee the future price. He buys whenever he anticipates a rise in order later to sell at a profit. He sells whenever he expects a decline in order to buy later and thus realize a gain. For his operations he selects large markets because in those he is confident of always being able to effect his purchases and sales. On the stock-and produce-exchanges he finds the conditions that make possible his operations. Also the real-estate markets of a large city offer opportunities of price-speculation.