Question

Critically evaluate the following statement:

“Playing the stock market is like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.”

Answer 1

This statement is not true.

Playing the stock market is not gambling. Every one who is investing in the right stocks of reputed companies who are fundamentally strong can win in this market. Speculators, in the market provide liquidity and helps promote market efficiency. Stock markets are organized markets, where stocks are traded in an organized manner on reputed exchanges. It has no relation to gambling. Gambling is simply playing the odds, and stock market is a zero sum game.