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What Is the Basic Difference Between Hedgers and Speculators

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What is the basic difference between hedgers and speculators?


Definitions:

Special Dividend

A one-time payment made by a company to its shareholders, often issued in response to exceptionally strong earnings or when a large amount of excess cash is on hand.

Stock Split

A corporate action in which a company divides its existing shares into multiple shares to boost the liquidity of the shares, though the overall value of the company remains the same.

Owner's Equity

The residual interest in the assets of an entity after deducting liabilities, representing the owners' share in the company's assets.

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