Money is the main reason many people engage themselves in gambling or the stock market. Casinos offer gamblers real money games like the True Blue [valid where legal] site suggests, with some of them giving users the chance to rake in jackpots in the six figures. Since the invention of the six-sided dice in Mesopotamia in the 3rd millennia, gambling has become more popular. The highest amount to be placed on a bet and won was the equivalent of today’s 2.4 million dollars by William Lee Bergsman in 1984.
The first stock market can be traced back to 1460 Belgium. Later, the industrial revolution boom of the late 18th century saw an increase in the stock market across Europe and America.
Since then, it has grown into the one trillion-dollar mammoth industry we know today, with the most expensive stock being Berkshire Hathaway, owned by Warren Buffet. The US tops the world in the stock market with a capitalisation value of 54% of all global stocks. Both gambling and stock markets are alluring to people due to their benefits, and this article is dedicated to identifying and comparing said benefits. So, what are these benefits, and which among the two brings more? Stay with me and find out.
Social Ramifications of Gambling and Stock Market
Members of society practice gambling and stock market trading, and in the long run, there are consequences to these acts. Gambling has proven more beneficial to the casinos as they expand daily, providing jobs and generating revenue to the economy. Some gamblers have been lucky and hit jackpots worth over $1 million, significantly impacting their lives. The only catch to gambling is that it can be addictive, making people lose money in the end. Doctors have classified obsessive gambling as a severe mental condition that can lead to depression and other mental illnesses.
In the stock market arena, people have always reaped big, and it is usually a long-term engagement that has helped people plan for retirement, pool funds together for college, or even build a home. Unlike gambling, stock trading is a slow but steady process that can never be addictive and always guarantees an eventual positive return outcome. However, it is essential to note that going into the stock market without proper knowledge and a strategic plan constitutes stock market gambling, which will make you lose money in the long haul.
Profit Margins in Gambling and Stock Market Investing
The ultimate goal that drives gamblers and stock market enthusiasts is the promise of high reward yields after their endeavours. Since gambling is a time-bound event, profits tend to come instantaneously. For instance, if a gambler places a wager on a horse race, they get their rewards immediately after the race is finished. In gambling, these instant payouts are gratifying as profits can be used almost immediately after being accrued. However, the only downside to this is that one is not always guaranteed to win as the outcome may differ from the wager placed, thus decimating the chance of getting any profit.
Contrary to gambling, stock market investing is a lengthy affair that can span a couple of years. The stock market trader has no luxury of instant jackpot payouts, and theirs is a process that guarantees profits later. Unlike in gambling, where the outcomes are either-or, stock market traders are always spoilt for choice when managing their earnings. These factors ensure an overall positive value in profits in stock markets instead of the overall negative value associated with gambling.
Ownership Factor in the Stock Market and Gambling
In the stock market trade, whether in shares, bonds, or assets, traders have a stake or claim in them. In simple terms, when one is involved in the stock market with a company, they are part owners, and they are liable for dividend payments and other goodies that come with their investments. The ownership factor in stock markets is very appealing because they will always get something for their investments.
For instance, if one invests in an asset and the company fails, the said assets can be liquidated to reimburse the investors, making trading in stock more worthwhile. In gambling, casinos have a monopoly, and gamblers are not part of the ownership and can’t claim any asset at the tail end of a gambling transaction. This reinforces the adage that the house always wins as gamblers can either lose or gain money after completing the event they wagered on. Also, note that, though this may always be the case, experienced gamblers have found ways to beat the house, making ownership a non-issue.
Risks Involved in the Stock Market and Gambling
In everything we undertake in our day-to-day lives, there are always risks involved. The same case applies to both gamblers and stock market traders. In gambling, there are high risks involved, and gamblers live for the thrill of it. The fundamental guiding concept in gambling is that a player should go all in. This concept ensures that when a bettor places a wager, they either win huge or get no returns at all. However, it is almost impossible to recover the money once a bet is lost.
On the other hand, stock market pundits avoid huge risks like the plague. This is because there is a lot of time to mitigate risks and prevent the eventuality of getting a loss in stock market trading. Moreover, even when there is a projected loss in the stock market, one can always withdraw their investments and trade them elsewhere. Due to this fact, there is always a high percentage that one will always recover their money in the stock market investments.
With all the benefits of gambling and the stock market can bring outlined in this article, it is safe to conclude that the two are in no way peas in the same pod. On the contrary, the benefits of the stock market far outmatch those of gambling, and those benefits include but are not limited to:
- In the stock market, profits are always guaranteed, unlike gambling, which is a 50/50 chance.
- There is no house advantage in stock markets, as traders claim ownership of the assets.
- There is no addiction in the stock market trade; thus, investors are free from the risk of getting mental disorders.
- One can plan for their future in stock markets instead of gambling, which is instantaneous.
- Stock market trade involves low risk compared to the high stakes in gambling, where you can lose everything.
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