speculative stock

Definition

A stock which is considered to be very risky, in comparison with its expected return. One example of an often speculative stock is a penny stock.

Use speculative stock in a sentence

A speculative stock, such as a penny stock, is a stock that has high risks in comparison to their expected returns.

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While we knew it was a speculative stock, the numbers looked promising so we went out on a limb and put some money in it.

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Stratton Oakmont became famous for becoming rich off investments in speculative stocks, but the more common story sees investors fall victim to "pump and dump" schemes and lose their money.

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broad-base index speculative flow