Distinguish between investment and speculation.

| **Aspect**          | **Investment**                                                                 | **Speculation**                                                                 |
|---------------------|-------------------------------------------------------------------------------|-------------------------------------------------------------------------------|
| **Objective**       | To earn returns (income or capital gains) over the long term.                | To earn short-term profits by predicting price movements.                   |
| **Risk Level**      | Lower to moderate risk; based on fundamental analysis (e.g., business value). | High risk; relies on market timing and price fluctuations.                   |
| **Time Horizon**    | Long-term (years) to achieve financial goals (e.g., retirement, growth).     | Short-term (days/weeks) for quick gains.                                      |
| **Analysis**        | Focuses on **fundamental** factors (e.g., company earnings, economic trends). | Relies on **technical** analysis (e.g., charts, trends, market psychology).   |
| **Example**         | Buying shares of a stable company like Ncell or NMB Bank for dividends.       | Trading stocks based on rumors or sudden market news (e.g., meme stocks).     |
| **Outcome**         | Aims for **sustainable** growth and wealth preservation.                     | Seeks **high volatility** and rapid returns, often at greater risk.          |