Is the Stock Market a Type of Gambling?
Many people tend to feel that the stock market is a type of gambling because it is not possible to predict the reaction of the companies to external events.
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The art of “Gambling” can be traced back to the Palaeolithic period. In Mesopotamia (Modern day Iraq, Kuwait and parts of Iran, Syria and Turkey) around 3000 BC the very practice of gambling was recorded. Over the past three centuries, horse racing and various other sports have been a key game board for gambling.
Statistically, it’s been a practice over random events. Stock Market, on the other hand, is a very speculative event based on the study of the market condition, the economic status of the company and its services. Which involves intense research, study and analysis using current and prior data available before investing.
- Win or Loss
Unlike, gambling, the stock market doesn’t have an ultimate win or loss title for its participants. However, it is more of a strategic and analytical profession and less a sport of gambling assets over any random events
- Calculative Approach
Stock market requires various technical and mathematical calculations in predicting the market trends with available information.
- Survival of the Fittest and Smartest
Unlike, gambling, which depends on mere luck in the “Dice” or “Shuffled Play Cards” or any other random events. The market is no close space event like gambling, it is determined by various push and pull factors prevailing in and around the globe, including the decisions of the companies, policies of the international and domestic trade. However, the strategic and smartly calculating traders happen to survive in the ocean of stock market.
- Long-Term Event
Stock market is no short-term game of “Ludo”. But it’s a rather long-term investment in the form of buying and selling shares with a profit motive.
- Wealth Building
Invest is a wealth building profession with the study of both the present and future prospect of any company in the market. Unlike, gambling, it is not an addictive habit or any luxury casino to the random event of “Roulette”.
Though, the art of investment is itself an analytical, calculative, and strategic approach. However, as the saying of one of the late Indian Stock market bull, Rakesh Jhunjhunwala, “Market is always commanding, mysterious, unpredictable and volatile”.
