Is Investing the Same as Gambling?
Gambling is a game, a contest. When you gamble, you take a chance that you will increase your money or lose your money. There's no way of knowing what will happen.
Investing is a game for some people. When you invest, you are putting money into something that you feel will be successful. If and when they are, the money you put in will increase. It is a game for those who do it for enjoyment. Many people invest not for enjoyment, but to make money. Why is this not a game for them?
When you invest your money, you aren't gambling. Some investments are very far from gambling, they're not even close. Take government bonds for example. You might even say they are more likely to pay you back with interest than your employer is, assuming it's not a government employer. There is a tiny chance they won't pay you back, but only in the severest of cases.
What about stocks? How does the stock market work in a way that's not gambling? Buying stock means buying part ownership in a company. You invest in that company with expectations that they will make a profit and you'll get paid dividends and/or the value of the stock will increase and you could sell for capital gains.
If you bet money at a horse race or put money down at a poker game, you own absolutely nothing. Whether or not you make money doesn't depend on the success of a business. It is completely by chance if yo make money.
By investing, you are adding another source of income to your existing income. In your investments, your money is working to make more money. If you ever receive a large sum of money for anything, invest it in a stable, low risk investment. By gambling it you are essentially throwing it away and won't make nearly as much as you would by investing in it.
Let's say you inherit $10,000 from a long lost Uncle. If you have a chance to gamble your money and double it, you could have $20,000. You could double it again and have $40,000 and so on and so forth. The problem is that the possibility that you'll even double it the first time is slim to none. If instead you invested it into the stock market and got an average 8 percent return and didn't touch it for 30 years, you would have about $100,000. Which would you choose? - 23223
Investing is a game for some people. When you invest, you are putting money into something that you feel will be successful. If and when they are, the money you put in will increase. It is a game for those who do it for enjoyment. Many people invest not for enjoyment, but to make money. Why is this not a game for them?
When you invest your money, you aren't gambling. Some investments are very far from gambling, they're not even close. Take government bonds for example. You might even say they are more likely to pay you back with interest than your employer is, assuming it's not a government employer. There is a tiny chance they won't pay you back, but only in the severest of cases.
What about stocks? How does the stock market work in a way that's not gambling? Buying stock means buying part ownership in a company. You invest in that company with expectations that they will make a profit and you'll get paid dividends and/or the value of the stock will increase and you could sell for capital gains.
If you bet money at a horse race or put money down at a poker game, you own absolutely nothing. Whether or not you make money doesn't depend on the success of a business. It is completely by chance if yo make money.
By investing, you are adding another source of income to your existing income. In your investments, your money is working to make more money. If you ever receive a large sum of money for anything, invest it in a stable, low risk investment. By gambling it you are essentially throwing it away and won't make nearly as much as you would by investing in it.
Let's say you inherit $10,000 from a long lost Uncle. If you have a chance to gamble your money and double it, you could have $20,000. You could double it again and have $40,000 and so on and so forth. The problem is that the possibility that you'll even double it the first time is slim to none. If instead you invested it into the stock market and got an average 8 percent return and didn't touch it for 30 years, you would have about $100,000. Which would you choose? - 23223
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How does the stock market work? Don't let the stock market keep you confused. Learn how to buy stocks to start safely investing your money today.
posted by X - Men @ 3:57 AM
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