Difference Between Investment And Gambling Slideshare

You are truly living in an era of technology. Technology is now more present than it has ever been before. And, such technologies are really taking over in the online industry. With tons of gambling sites, cryptocurrencies, and analytical software more and more people are taking to the Internet to make money. Some people are making investments, while others are trying their hands at becoming professional gamblers. Some people even consider gambling and investing to be the same thing. However, that is not entirely the case at all. And, if you want to make the most of your money, you really need to understand the difference between the two.

  1. Difference Between Investment And Gambling Slideshare Presentations
  2. Difference Between Investment And Gambling Slideshare Business
  3. Difference Between Investment And Gambling Slideshare Presentation
  4. Difference Between Investment And Gambling Slideshare Social

Understanding The Definition Of The Two

Difference between Investment, Speculation: The main difference between speculating and investing is the amount of of risk undertaken in the trade. Typically, high-risk trades that are almost akin to gambling fall under the umbrella of speculation, whereas lower-risk investments based on fundamentals and analysis fall into the category of. In July 2000, Tom Murkco, the CEO of Investor-Guide.com, published an essay titled “What is the difference between gambling and investing?” While Murkco noted that many aspects of gambling and investing might appear similar, there were several distinct and easily defined differences. When it comes to the stock market, there’s a fine line between gambling and investing. Sometimes it’s hard to tell the two apart. Both strategies attempt to make money in the market and the differences can be so subtle as to go unnoticed. The Difference Between an Investment and Gambling. By Sara Williams May 19, 2017. People who try to use money to make more money are always presented with risk-reward opportunities.

Investment Vs Speculation Basis Investment Speculation4.Insider trading analysis Not possible Based on insider trading transaction happen5.Stability of Income Very stable Uncertain and erratic6.Sources of income Earning of enterprises Change in market price7.Length of commitment Long run For a short time period PRESENTED BY:ANU MISHRA 8. Poker table positions lojack.

First, before you can truly understand the difference between gambling and investing, you need to have a complete understanding of the two. The best way to do this is by looking at the terms through the eyes of a dictionary. The dictionary defines gambling as playing a game for money or property. This basically means that you are betting on something where the outcome is unknown and can be completely random. You are taking a chance on something. The dictionary defines investing as committing money in order to earn a financial return. This will be money that you can use for future benefits or advantages.

Odds And Analysis

When you are playing games on joker123 it is completely important to understand that these games are going to have odds. Sure, these are calculable and become more accurate the longer a player plays. Investing in the stock market is somewhat similar, but if done right investing won’t be a game. There are a number of investment strategies that are similar to gambling strategies. However, there are also some investing that are guaranteed to make money over time. That being said it should also be noted that properly investing in stock requires a thorough analysis of real-world data.

There Is No House

When it comes to gambling, you are going to be playing against other players as well as the house. For most games like slots and roulette, the odds are going to be in favor of the house. This means that not only is the gambler at a disadvantage from the beginning of the game but the longer they play, the more disadvantaged they are going to become. This is where the stock market is different. The stock market really favors long-term investors because there is no house. The longer the period of time you invest, the more likely you will make money. It is true that it is hard to tell on a day-by-day basis where the market is going to go or what any individual stock will do, but the long-term average annual increase of some stocks can be as much a nine percent.


Day-To-Day Fluctuation

So far it probably seems like investing is far better than gambling, but that is not the case at all. One major difference between gambling and investing is fluctuation. The odds are going to remain within the same simple parameters when you are gambling, but when you are investing the fluctuation can make all the difference in the world.

There are a number of people who look at investing as gambling. This is a distorted perception that hinders a number of individuals from the financial returns of sensible investment. Prudent investment is normally profitable in the long-run.

Furthermore, gambling and investing have apparent similarities but there is still a principle difference between them. On one hand, investing is putting money to use through the purchase of something that brings returns such as income or interest. Gambling on the other hand is about playing at a game of chance for a reward. It risks money or valuables and mainly relies on luck.

Difference Between Investment And Gambling Slideshare Presentations


The reality of gambling and investing are completely different. In casino gambling, for instance, the casino has the upper hand over the gambler. In the end, the player is expected to lose. However, the chances of winning vary from one casino to another but they all purpose to achieve one thing: not to lose. The player is therefore at a disadvantage when playing casino games since the percentage rate of winning is very low.

Similarly, in bets on horse racing and sports betting, the likelihoods are weighted against the one who bets. Staking on horses amounts to a bet against other bettors since the chance of winning relies on the amount of money staked on each horse.

What happens is that the race track gets a share from the bets on winning horses. Subsequently the money is divided among those who bet on horses. However, the bettor normally wins about one-third of the time.

In the same way, sport betting requires the bettor to put an additional sum over and above the bet amount. The house retains this whether the bettor wins or loses. In addition, the number of points a bettor has to gain in any game, be it football, baseball, hockey or basketball, decreases his chances of winning. This means that even if the bettor’s team wins but does not exceed the points given by the bettor, he loses on that game.

In short, gambling is meant to be a loss for the player who is placed at a drawback from the start. The possibility of winning is therefore small and random.

Difference Between Investment And Gambling Slideshare Business


Unlike in gambling, you own something when you invest. In investing, you can own shares of a company or other securities. When the company makes profit and pays-out dividends, you also benefit from it. In addition, if the price of stocks you own rise, you can sell then at a gain.

Difference Between Investment And Gambling Slideshare Presentation

There is however the risk of losing too since the stock market swings up and down. Mostly, the market has been rising over the years resulting in profits.

Moreover, investing in highly-rated corporates and government bonds has been profitable in the long run. This kind of invest is also linked with minimal risk. Besides, investing in select real estates, especially residential housing has proved worthwhile.

In addition, the past performance-trend does not guarantee positive returns in the future. It is better to caution your investment through having a diverse portfolio that comprises of a range of products. You will realise that the total of the profits and loses is not negative.

Difference Between Investment And Gambling Slideshare Social

Final Verdict

Investing is certainly not gambling. Whereas gambling is a no-win affair, investing gives you a reasonable opportunity of making returns. Some investments may fail or even be a catastrophe, just in a similar manner to losing all you money at the roulette table. However, investing is more sound than gambling.