Speculation
Thursday, November 16, 2006
Controversy about currency speculators and their effect on currency devaluations and national economies recurs regularly. Nevertheless, many economists (e.g. Milton Friedman) argue that speculators perform the important function of providing a market for hedgers and transferring risk from those people who don't wish to bear it, to those who do. In addition, according to the standardized Series 3 exam, speculation adds liquidity to a market. ( The Series 3 exam is administered by the National Association of Securities Dealers (NASD). The National Futures Association (NFA) generally requires an individual to successfully complete the Series 3 in order to be qualified to sell commodities or futures contracts.)
posted @ 7:02 PM,
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