2007-04-02 16:06:15 · 7 answers · asked by Eyecandy 1 in Business & Finance ➔ Investing
It's not. Gambling is a zero-sum game. Stock market is a positive-sum game (in the long run anyway).
2007-04-02 16:29:55 · answer #1 · answered by NC 7 · 2⤊ 0⤋
The stock market (over the long term) has positive returns. You can give youself an "edge" by learning the market and individual companies (or sectors). Gambling is mostly plain, simple luck (which can include some uinderstanding of "odds").
You can gamble in the stock market (I got a tip, I know that's a good company, my uncle works there etc.). The biggest skill is not to invest like you're gambling.
2007-04-03 08:25:14 · answer #2 · answered by Common Sense 7 · 1⤊ 0⤋
Gambling is strictly a matter of probabilities with no intrinsic value. Investing is ownership of an asset with an intrinsic value that has the ability to appreciate. To a gambler chips, dice, cards, have no intrinsic value. Because the gambler doesnt own them. He has no vested interest in them. He is dependent on the probabilties. To the casino owner its an investment. He has equity that has the ability to appreciate, because of the demand for gambling, Some stocks have no intrinsic value because there's no assets and no equity. The stock market can also be gambling if you have no vested interest in the companies you put your money into. Like throwng darts at a page of stocks. You may make money, but thats only a matter of probability, The decision wasnt based on information. Thats another characteristic of gambling. In a fair game there is no information in gambling that will determine any better or worse outcome. Stocks have information that is published about the company and there is also external published information that can affect stocks.
2007-04-03 00:44:10 · answer #3 · answered by jeff410 7 · 1⤊ 1⤋
There is a lot more skill in stocks. Note the word "playing". Well, it is real money and that is not play. It is work and properly done you make money.
The mention of a "zero sum game" is very excellent, by the way. There are many learned authors that describe stocks as a process of winners and losers, where the winners (they are the ones that bought the author's book) take money away from the losers (who stupidly didn't buy the book). Not true at all. There are days when everybody comes out on top and nobody loses. And, recently, the reverse.
2007-04-03 00:32:55 · answer #4 · answered by ZORCH 6 · 0⤊ 0⤋
The biggest way they are the same is there is study required for both yet lazy people refuse to study and then complain about poor results. The comments above me about gambling would make many professional gamblers laugh as they show no knowledge of the subject. Neither are subjects to be played - serious.
2007-04-03 01:09:31 · answer #5 · answered by vegas_iwish 5 · 1⤊ 0⤋
gambling no exit option
G small amt small chance big return
stk amt & return same & chance r more
2007-04-03 05:31:08 · answer #6 · answered by dinu_pawar 5 · 0⤊ 0⤋
You will lose your money either way.
2007-04-02 23:23:37 · answer #7 · answered by popeye 4 · 0⤊ 1⤋