what is different between speculate in stocks and gambing?
2007-08-29 15:53:55 · 9 answers · asked by Binku 1 in Business & Finance ➔ Investing
Generally stock investing is based on company history, earnings, known information that you can gather, study, and make an informed decision. Gambling is generally based more on chance and less on known variables.
2007-08-29 15:58:34 · answer #1 · answered by ssmesq 5 · 0⤊ 0⤋
Gambling is when you depend on chance for success and not on knowledge or skill.
And it's certainly possible to gamble with stock prices. All you have to do is bet your money on various stock options without knowing much about these companies and hope that you will be lucky and strike it rich with one of them.
But most people who trade stocks try to educate themselves and try to use their knoweldge and skill to profit from stock trading. They make educated guesses and predictions about future stock prices. And this kind of forecasting of market psychology and trying to profit from it is called speculation.
2007-08-29 18:31:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋
The difference is with stocks, even if it goes down, it can go back up. Gambling is all or nothing.
2007-08-29 16:25:30 · answer #3 · answered by ? 5 · 1⤊ 0⤋
Expected return, the average probability of outcomes. In gambling the expected return is negative.
2007-08-29 16:06:33 · answer #4 · answered by jeff410 7 · 0⤊ 0⤋
Not much, but in most cases, if you are long, the prevaliling winds of the market are UP, whereas the house always has the edge in casino style gambling.
2007-08-29 15:57:42 · answer #5 · answered by heart_and_troll 5 · 0⤊ 1⤋
Nothing -- speculate is sofisticated and gambling is for casino... But no differnece in the stock market...
2007-08-29 16:00:21 · answer #6 · answered by Gerald 6 · 0⤊ 1⤋
investing in stock is the same as investing in horse racing except that if your 'horse' is not doing so good you can sell and try again without losing all your stake
2007-08-29 22:02:44 · answer #7 · answered by Daddybear 7 · 0⤊ 0⤋
speculate:Assumption based on previous info.
gambling:Hope based guess of what the stock is, and where it's future maybe.
2007-08-29 16:00:26 · answer #8 · answered by Anonymous · 0⤊ 0⤋
Knowledge and talent. Add a lot of hard work and you've got your answer.
2007-08-29 16:48:04 · answer #9 · answered by Common Sense 7 · 0⤊ 0⤋