Buying Stocks

• When a person buys a stock, she is essentially buying a portion of a company. This stock is considered a security, meaning that it is a fungible paper asset. Many, if not most, investors choose to buy stocks as a means of making money. To make money buying stocks, a person must buy a stock, wait for its price to increase, and then sell it to another party for a price higher than she originally paid for it.
  
  

"Speculator"

• The term "speculator" is applied to an investor who is purchasing a stock or other asset because he is speculating that the price will go up and he will be able to make a profit. Most investors in stock markets could be considered speculators, as they are buying stock out of a desire to make money. However, some parties may buy stock for reasons other than to see the value of their investment appreciate.
  
  

Alternatives

• Some people buy stocks because they want to own a portion of a company, not because they want the value of their holdings to increase. For example, a person who buys up shares in a company may want to do so simply so that she is able to exert some control at the company, regardless of how the company is valued. This person would not be considered a speculator, as she is not speculating on where the price will go.
  
  

Manipulation

• A person may also buy a stock as a means of manipulating that stock's price. For example, a person may choose to buy large quantities of a stock as a way of driving the price up. In this case, the person could not be considered a speculator, but rather a manipulator, because he is not required to speculate where the price will go, but is exerting some control over its movements. In some cases, this may be illegal.