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Here is the context.

People speculate and do trading in stock marketing. There have been cases of people pumping money on a specific stock and creating a fake demand for it which in turn shoots up its price. This will create speculation.

Now, what is meant by last sentence is when people see a price of a stock going up, they tend to speculate without real knowledge as to why is it happening and might buy the stock.

Is that the correct usage or is there a better phrase to convey the same thing?

For some reason, which I am unable to articulate, I find that phrase not accurate. I feel its a usage like create thought where the appropriate usage would have been triggered a thought.

Thank you.

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  • Comments are not for extended discussion; this conversation has been moved to chat.
    – tchrist
    Jul 18, 2021 at 23:02

1 Answer 1

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According to the Cambridge dictionary, this is the Financial English definition of "speculation"

the act of buying something hoping that its value will increase and then selling at this higher price in order to make a profit:

  • speculation on/in sth Evidence that the economy is accelerating could fuel further speculation in commodity markets.
  • The share issue coincided with a huge rise in amateur stock market speculation.

So yes, the word "speculation" can be used in this sense.

However, the original text does lack the expected fluidity for a small piece on financial market, since it is a bunch of short sentences. Here is a suggestion, alterations are in italics:

People speculate and trade in stock marketing. There have been cases of traders pumping money into a specific stock in order to create a fake demand for it which in turn shoots its price up, leading to further speculation.

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