Is buying risky financial assets a form of gambling?

Return To Article
Add a comment
  • j_factor Bountiful, UT
    Dec. 19, 2012 10:32 a.m.

    Some forms of short-term investing are similar to gambling. Long-term investing is different. This is why long-term investing should be encouraged.

    Gamblers should not expect a profit. In games of chance, the house always wins. On the other hand, investing can provide positive results for most participants. A simple buy-and-hold strategy in a diversified portfolio has and is likely continue to provide positive results for investors.

    Financial markets were also created not just to make money, but to make money by providing a service. Say what you will about modern finance, but the markets provide opportunity for corporations to raise money for productive uses and then return that money to investors with any change in value.