Stock market vs gambling essay


Did you make an investment or take a gamble? In fact, one could make the argument that investors generally take on more risk than professional gamblers, because of the uncertainly inherent in the financial markets.

It tends to put money in the hands of those with the most promising and productive uses for it, and drives the economy Stock market vs gambling essay upward. Lawmakers and regulatory bodies need to be clear on what the terms mean, so they understand the scope of their legislation and regulation, regarding prohibited behavior, adequate disclosure, participant protection and similar issues.

Otherwise the stock exchanges may some day be blamed for heavy speculative losses, which those Stock market vs gambling essay suffered them had not been properly warned against.

Equating the stock market to gambling is a myth that people on the internet and television pundits have perpetuated for years. Similarly, while for most types of gambling the odds are against you, it is possible for the odds to be in your favor.

Buying shares of a company is the equivalent to having a claim on the assets, debts, and more importantly a small fraction of the profits of the company whose shares you buy. There is no Investors Anonymous, and no one talks about compulsive investors.

Compulsive gambling has been correctly identified as a problem, and organizations like Gamblers Anonymous are helping people cope with the problem. The internet has enabled online brokerages and other financial web sites to revolutionize retail investing, which on the balance is a tremendous benefit to both individual investors and the economy in general.

Then look at the list above. On the other hand, they often increase the volatility of the markets, which is on the balance usually a negative although it does afford savvy investors opportunities for larger profits. Of the four groups, recreational investors, professional investors, recreational gamblers, professional gamblers, there are more similarities between the two recreational groups and between the two professional groups than between the two investing groups and between the two gambling groups.

And, gambling is not investing. An even more strict definition of investing would require that it involves the purchase of an asset which either produces a stream of income or can be made to produce a stream of income.

Also, some people invest more aggressively than they should, which is virtually identical to gamblers who bet more money than they can afford to lose.

Investing Vs. Gambling: Where Is Your Money Safer?

Investing is widely regarded as the engine that drives capitalism. While investing and gambling have a few similar characteristics, they are very much different.

However, the widespread accessibility of cheap online trades has also attracted some people who enjoy betting and view online trading as a new form of entertainment. Every investor and gambler have a certain risk tolerance that they are willing to lose.

In investing, there can be varying degrees of winners and losers. Investing is a good thing, gambling is a bad thing. But, with gambling, no value is ever created.

Of these the foremost are: Both investors and gamblers must know how much risk they can tolerate, though. This is true even if the same stock happens to be chosen. Gambling does tend to help local economies, but also usually brings with it well-documented unpleasant side effects. There are plenty of investments where the odds are against you: While investing and gambling probably initially appear to be worlds apart, the above attempts at differentiation revealed that the actual differences are smaller than the perceived differences, and that there is a significant gray area in the middle.

Would you rather put your money under your mattress or in an extremely volatile stock that could go bankrupt or could double in value? Pepper addictand a self-proclaimed investing junkie. Not Gambling with Your Investments: This helps them gain useful information to influence their betting and strategy.

Email him directly at Hank[at]MoneyQandA. It has planetary reach, a multitude of local competitive arenas, volumes of statistics, star players, and -- best of all -- anyone can move between the domains of observer and participant, fan and player.

I should hasten to add that not all types of investing are productive. Investing is completely different. He has written extensively for many nationally known financial websites and publications about investing, retirement planning, and even how to find the best return on investment.

For example, industry studies have repeatedly shown that the behavior of mutual fund investors often accounts for poor investment performance.

What definitions did you come up with? But perhaps a better interpretation would rest on the realization that different investors have different tolerances for risk.

Stock Market - Essay Example

Also, they concentrate on the areas in which they achieve maximum results.Gambling Essay. Topics: Stock market Stock Market Vs. Gambling Jeff Galuardi The difference between gambling and buying stocks of companies is that you are betting on the future of the company and you have records you can research.

If something terrible happens to the country, like a natural disaster, stocks will go down. If the country. Investing Vs. Gambling: Where Is Your Money Safer? By Marc Davis. Share The 5 Biggest Stock Market Myths Gambling Data compiled on the stock market. THE DIFFERENCE BETWEEN INVESTING AND GAMBLING.

by Kim Butler | May 11, “Investors are sometimes accused of treating the stock market like a casino. Now, one Wall Street firm wants to treat casinos like the stock market.” published an essay titled “What is the difference between gambling and investing?”.

Stock Market Vs. Gambling The difference between gambling and buying stocks of companies is that you are betting on the future of the. Is the stock market gambling?

Is the Stock Market Gambling? Why Trading in the Stock Market Isn’t Gambling

Should people consider trading in the stock market to be a form of gambling? The answers to these questions are an unequivocal – No! Investing in the stock market is not gambling, and novice investors should not think of.

What is the difference between gambling and investing? I agree completely, and I suspect that his use of the term 'speculating' is very similar to this essay's use of the term 'gambling'.

Special Disclaimer. The Stock Market; Principles of .

Stock market vs gambling essay
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