Please respond to this post on whether you agree or disagree, why and provide an

Question

Please respond to this post on whether you agree or disagree, why and provide an APA reference. Has to bea at least one paragraph answer.

“Sometimes it may seem that you can lose just as easily at the stock market as you can at the blackjack table. Ask anyone who has lost money in Enron how they felt after their stock went to zero. You can lose big on a stock but rarely do companies go bankrupt and the stock go to zero. In blackjack or craps, however, losing all you have is quite common.” (Lipski, 2015)

Gamblers in Vegas, know it’s a win or loose. You either place your money on the table and it’s 50/50 you win or loose. They realize the stakes. In the stock market, investors is the word to use, to an extent. Investors are looking for long and short-term payouts. In gambling at Vegas, there isn’t necessarily a short or long term payout, unless you are playing craps and you can continue to reap benefits, but in the end, a bad roll, you loose EVERYTHING. In the market, you can keep your money in options that have a risk with a higher payout or you can choose a long term investment, with perhaps a smaller payoff yet a “guarantee” return. It’s all dependent on so many variables: How big of an investment, how risky is the investment, what is the length of the investment.

Gambling in Vegas is almost whimsical, but investing in the stock market is taking a greater investment that can produce information on why you should invest, it’s not just deal the cards and you could win, it is more in the idea that “Let me show you our history, our mission our financial statement on why you should invest with this company.”

Lipski, Bruce (2015.) Is Playing the Stock Market The Same As Gambling?

Retrieved online September 16, 2015 from:

http://www.streetdirectory.com/travel_guide/144164/trading/is_playing_the_stock_market_the_same_as_gambling.html

Explanation / Answer

I agree with this post because gambling is completely a game of chance and returns or losses do not have a basis to support it. Its entirely based on luck. However investing in stock markets or a specific security and receiving a return or incurring a loss is partly affected by the company's ability to make profits or not perform well. The company's performance can be attributed to various factors specially the decisions made in their strategy, marketing, fund management, operations etc. Studying these factors does give a fair idea of stock price performance of the company. However, a caveat is that as investors rely on disclosure of information by the company for their investment decision process, any manipulation in the information reporting completely disrupts the investment decision making process. This could be seen in the case of Enron. Investors need to be wary of such possibilities and ensure whether the information published make sense and not just take it at face value.

Related Questions

Navigate

• Browse (All)
• Browse P
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.