Legal Definitions - jeux de bourse

Jeux de bourse refers to engaging in high-risk financial activities on the stock or bond markets with the primary goal of making quick profits from short-term price fluctuations, rather than investing for long-term growth. This often involves complex financial instruments and strategies that carry a significant risk of loss.

• Example 1: An individual spends their day rapidly buying and selling shares of a volatile technology company, trying to capitalize on small intraday price swings. They do not intend to hold the stock for more than a few hours, aiming to profit from minor market movements.

  Explanation: This illustrates jeux de bourse because the individual is engaging in highly speculative, short-term trading with the aim of quick profits from market volatility, rather than a long-term investment strategy based on the company's fundamentals.

• Example 2: A financial trader uses a significant amount of borrowed capital to purchase futures contracts for a commodity like natural gas, betting that its price will rise sharply in the next few weeks due to an anticipated supply shortage. If the price moves even slightly against their prediction, they could face substantial losses due to the leverage involved.

  Explanation: This exemplifies jeux de bourse as it involves taking a highly leveraged, short-term position on a commodity's future price, driven by the hope of rapid gains from market movement, which inherently carries elevated risk and is characteristic of speculative play.

• Example 3: A hedge fund manager anticipates a sudden, temporary shift in global interest rates and aggressively buys and sells short-term government bonds over a few days, aiming to profit from the immediate, temporary price changes caused by the rate speculation rather than holding the bonds for their stable yield.

  Explanation: This demonstrates jeux de bourse because the fund is not investing in bonds for their long-term security or income, but rather speculating on rapid, short-term price movements to achieve quick profits, which is a hallmark of high-risk market speculation.