Answer to Question #317412 in Marketing for Maham

Question

Are Investment and gambling the same? Justify your answer explaining the concept and

characteristics of Investment.

Answer 1

Investing and gambling both involve risk and choice more specifically, the risk of capital with hopes of future profit. But, gambling is typically a short-lived activity, while equities investing can last a lifetime. Likewise, there is an undesirable expected return to gamblers, on average, and over the long run. Instead, investing in the stock market classically carries with it a positive probable return on average over the long run.