What strategy involves buying assets to quickly resell at higher prices?

The strategy that involves buying assets with the intent to quickly resell them at higher prices is known as speculation. This approach is focused on capitalizing on short-term price fluctuations in the market, where a speculator seeks to profit from anticipated movements in asset prices. For instance, this could involve purchasing stocks, commodities, or other financial instruments with the expectation that their value will increase in the near term, allowing for profitable resale.

Speculation differs from other strategies such as investment, which tends to focus on long-term value and growth potential, or hedging, which is a risk management strategy aimed at offsetting potential losses in investments. While trading may also involve buying and selling assets, it does not inherently emphasize the rapid resale for profit in the same way that speculation does. Thus, speculation is characterized by its high-risk, high-reward nature, making it distinct from the other strategies presented.