Definition of speculate

The word "speculate" derives from the Latin "speculātus," which means "watching," "observing," or "looking attentively." This term was used by medieval scholars to describe the act of studying Scripture carefully and contemplatively. The word's meaning evolved during the medieval and early modern periods, as it came to be applied to financial and commercial transactions. In the 14th century, "specularia" denoted merchants' wares, particularly exotic goods, and, in connection with trade, the term "speculātus" signified a trader or merchant. Eventually, the verb form "speculari" (originally meaning "to make a show of," "to exhibit," "to display") became "speculātus," which carried the meaning of "trading in commodities," and later, "buying and selling in the hope of gain." From the mid-17th century, the verb "to speculate" began to refer to engaging in financial transactions with a strong potential for gain or loss, especially in connection with stocks, shares, and the stock market. The term "speculation" similarly came to designate the act of speculating, as well as the consideration of a theoretical possibility, hypothesis, or idea. In summary, the Latin "speculātus" provided the origins for the English word "speculate," which originated from the meaning of watching or contemplation in Scriptural study before morphing into the meaning of trading and financial transactions. It now encompasses buying, selling, and making financial deals with an eye for substantial returns, as well as theoretical conjecture.