Gambling in The Stock Market.

Gambling in The Stock Market. Essay example
Undergraduate
Essay
Finance & Accounting
Pages 10 (2510 words)
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Introduction Stock market started over 200 years ago in the United States of America. This came to existence as the colonial governments attempted to raise finances to fund war activities by selling bonds and government notes, which were to be paid in future with a profit…

Introduction

NYSE was used as a platform to trade bonds and stocks. Following the establishment of stock and bond trading platforms, most people view it as a money tree, which creates wealth easy and quick. As a result, many people used their savings to invest in stocks and bonds. However, it is important to note that investing in stock market requires hard work and adequate research because it is unforgiving for amateurs or gamblers. Gambling in the Stock Exchange There are clear distinctions between gambling and investing in the stock exchange as indicated below. Gambling refers to putting money or other valuable assets into activities whose outcome involves chance. It can also refer to an immediate event or act, whose motive is immediate gratification. When the word gambling is mentioned, people easily identify casinos, gaming activities as well as lottery. However, they fail to identify that putting money into the stock exchange to buy stocks, bonds and other investment vehicles with no concrete and clear goal may also qualify as gambling. Gambling in the stock exchange is not a new phenomenon among many new traders. Gambling can be addictive and destructive at the same time. Gamblers are risk seekers because they go for all or nothing. It is motivated by compulsion or entertainment. ...
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