Economic GD Topics

Is Stock Market similar to gambling?

Stephen Eleazer Daniel
. Update: May 3, 2019 3:51 pm
4

The answer is both Yes and No for this question. But the answers are applicable to different people.

First and foremost, Gambling is the wagering of money or something of value on an event with an uncertain outcome, with the primary intent of winning money or material goods. In this definition, the uncertainty of the outcome is the key to define anything as gambling.

Stock markets, on the other hand, are not so uncertain. People have made a fortune by investing in stock markets. Warren Buffets, known as the Wizard of stock markets became the 2nd richest man in the world by wisely trading in stocks.

Coming back to the 2 kinds of people. For people who are completely unaware of how the markets work, what is the current situation in the markets and basics of investing; the stock markets may seem like gambling and a quick way to earn or lose money. But, for the people who are aware of all the things mentioned above, stock markets are not that uncertain and for most of the experienced investors, they are almost certain.

Several methods have been developed to read and predict stock markets. Hundreds of books have been written on understanding and predicting the stock markets. All of such sources can help anyone get better at investing and come out of the phase where it’s mere gambling and nothing else for them. Some might say that Intra-day trading is definitely Gambling, but experienced traders have made definite profits through intra-day trading too.

Conclusion :-

With proper knowledge of markets and investing, trading in stock markets do not remain gambling anymore.

Your Turn…

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Purpose: MBA GD topics, Bank Exams

Tags:stock market gd topic

4 Comments

Aayushi, May 6, 2019 @ 11:37 am Reply

In my view, gambling and stock marketing are different but not that much both requires risk but knowledge of business and stock market makes stock marketing different from gambling. Stock marketing is certain for people who have the knowledge about the future of the company and how to invest and buy shares but it can be uncertain like gambling for the people who don’t know-how and when to buy shares,. If I take the example of Warren buffett, wizard of stock market, chairman and CEO of Berkshire Hathaway company he is one of the richest man in the world, he applies his knowledge of business and stock in investing and buy shares which made him rich and there’s is another example Radhakishan Damani he’s an Indian investor. He was a dalal street investor and now he owns D Mart.
So, the conclusion is, with the proper knowledge of stock market and business, stock marketing can be certain and people know when to invest and earn profits.
Sher, May 5, 2019 @ 8:13 pm Reply

According to me stock market different from gambling if you purchase share from different media before purchase share provide all detail given by indl but ind inveSt in gambling no any data share by people so we can say that this is different from stock
Tinku Paul, May 5, 2019 @ 4:52 pm Reply

According to me stock market is similar to gambling, it’s peoples addiction. Sometimes they make loss and sometimes gain. When they purchase some shares may be that time market costs less and when market costs high they sale their shares and makes profit but sometimes they purchases huge quantities shares in a hope when market costs will high they will sale their shares and make profit but if market costs will not high , shares costs is getting less and less and that time they incurred huge loss. It’s luck , when luck favour they make profit but sometimes they incurred huge loss . So share sales and purchase like a gambling.
Ramparsad, May 4, 2019 @ 12:02 pm Reply

In my point of view, it may be gambling because many lake of things, we buy in execess and in high price but after some time price decrease, in this case stocker take a loss.