Is Investing Gambling?
By gambling you are taking a big chance that you might either win a lot of money, or you might lose a lot of money. You are playing a game and you don't know what's going to 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?
Investing is not the same as gambling. There are many different ways to invest your money, and some ways are not even close to gambling. When you invest in a government bond, you are guaranteed your principle and interest. It's not a gamble if you know for sure you're going to be paid back. There is a slight possibility that they government won't pay you back, but the government would have to be in a lot of trouble for that to happen and getting your money back would be the least of your worries.
How does the stock market work differently in the case of gambling? When you purchase stock, you become part owner in the company. By investing in that corporation, hopefully when they make a profit, you'll be paid in dividends, or if they are growing and increasing in value, the value of the stock will go up.
When you put money down on a football game or when you give your cash to a casino, you own nothing. Your earning power does not depend on the success of anything or anyone. It depends simply on chance.
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? - 23229
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?
Investing is not the same as gambling. There are many different ways to invest your money, and some ways are not even close to gambling. When you invest in a government bond, you are guaranteed your principle and interest. It's not a gamble if you know for sure you're going to be paid back. There is a slight possibility that they government won't pay you back, but the government would have to be in a lot of trouble for that to happen and getting your money back would be the least of your worries.
How does the stock market work differently in the case of gambling? When you purchase stock, you become part owner in the company. By investing in that corporation, hopefully when they make a profit, you'll be paid in dividends, or if they are growing and increasing in value, the value of the stock will go up.
When you put money down on a football game or when you give your cash to a casino, you own nothing. Your earning power does not depend on the success of anything or anyone. It depends simply on chance.
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? - 23229
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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 @ 9:16 AM
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