Skip to main content

How Investing in Stock Market is different than Gambling



                  Generally, always people says that stock market is just gambling; nothing much. We all heard this type of sentences from our surroundings and believe in that which is not true. Only those guys who don’t have knowledge about market says these type of words. In this article we are going to tell you that how stock market is different than gambling.


•Investing in the stocks that means investing in a company and get small ownership of that publically traded company. Suppose a company have total 100 shares and someone holding 20 shares that means that person is having 20% ownership of company. If someone have more than 50% of company’s total stocks than literally you can control the whole company. While in publically traded company it's not possible generally.

•Gambling is Zero Sum Game. In gambling winner takes money from loser. No value is ever created.  In stock market whatever the amount of profit is generated by company is equally distributed to its all stock holders so, everyone gets benefit from it. Also, by investing we are increasing the overall wealth of the economy.

•In gambling people can earn money or loss it in just few seconds while stock market is a long term investment.
•Gravitational force is not applied to the stock market. Stock price goes higher doesn’t mean that it will come back at the same place from where it begun. Back in 1964 when WARREN BUFFETT took Berkshire Hathway publically at that time its stock price is just $12.37, currently its traded near $270,000. That means it produced 2,182,700% overall gain in 1964-2017 time period. And it also means that a $10,000 investment would bought 808 shares of the company, which could be worth $218 million as of today. That’s the power of stock market.



•People can help to change the world by investing in companies such as Technology, Renewable Energy, Social and Environmental firms, Biotech etc.
•In gambling chances of win and loss are same 50%. Just in one game people can double money or loss all but in stock market money never become zero unless company declare bankruptcy and went out of the market even after that common stock holders get face value price.
•In stock market odds are in your favor but in gambling it’s against you.
•Gambling is entertainment, while investment is business.

•Investment in stocks is done for specific goals such as savings for retirement, while gambling isn’t.
•Investors can often reduce their losses and get out of stock if they start losing money, which is often called as stop loss strategy. Once gambler involved in gambling after that it’s not possible to stop further loss until game is over.
•Unlike gambling, there is all information available about stock market and company and it’s open for all.


•Gambling is totally based on luck and emotions while stock market investment is based on your knowledge, experience, strategy and most important correct time.
•Furthermore, gambling can be addictive and destructive, but investment can’t.
•Mostly people do gambling just for fun while people invest in stock market as their primary or secondary income source.

Still anyone who believes that STOCK MARKET is GAMBLING than YES, I am a GAMBLER!!!



Comments

Contact Form

Name

Email *

Message *