Gambling, by definition, is the wagering of money or goods, on an event with an undetermined outcome, with the intent of winning more money or goods. That’s paraphrasing Wikipedia, but that’s the heart of it. Gamblers will wager on anything and everything under the sun. A race, a game, the turn of a card, the flip of the coin, even the worth of a company. To a gambler, it’s all fair game. In the movie ‘The Color of Money’, Paul Newman’s character sates that [“Money won is sweeter than money earned”], as surely anyone who’s ever won any money, would attest. Who hasn’t heard the story of the guy making millions from a simple $500 investment? 40 years ago. Most people forget that part. True investments take years of growth before seeing a real return. In the movie ‘Wall Street’, Michael Douglas ‘creates money out of thin air’, making ‘millions in minutes’, buying and selling stocks and companies. In the real world, any body with an internet connection and a bank account, can begin trading with an on-line brokerage house. You’ve heard Boeing was about to sign a huge deal to sell a fleet of aircraft? Go long on the stock, and wait for the earnings report. You’ve heard the early reports on the huge oil spill? Take out some put options contracts. Big moves equate to big profits, assuming you are on the right side of the trade. Huge losses if you are not. You even get a new moniker. Instead of a gambler, they call you a trader. You might be a day trader, a position trader, or perhaps even a swing trader. If you are a trader, you are a gambler. Actually, by definition, any money in the market could be viewed as a gamble. Would you put your money into stocks if you knew you would lose your money? Of course not. you put money in, so that you can take more out. By definition, that’s gambling. Think back to 2008. All those baby boomers with their nest eggs tied up in stocks that paid dividends, and bonds with high yields. Because their gamble carried little downside risk, they called it an investment. A year later, the Dow Jones had been cut in half, and all those nest eggs were cooked. Not so safe after all. The Free Dictionary says investing is ‘commit[ting] money in order to gain a financial return.’ By that loose definition, Roulette players are ‘invested’. Is this just semantics? Is investing just a ‘game term’ used in place of gambling? Looking to individual state legislation for guidance, municipalities often refer to gambling as wagering on games of chance. This is an important distinction. Games of chance would be things like roulette, craps, and various card games. Even a sporting event could be considered a game of chance. But is the stock market a game of chance? Are you playing a game of chance when you purchase 100 shares of ExxonMobile? A company with a large market capitalization and consistent growth? A company with proven leadership, increased earnings and revenue? Or is that a smart investment? What about the futures trader, thinking the price of gold will be $400 higher in 4 months time? Is he playing a game of chance? Does all the technical data he uses and analyze matter? Just because you have money in the stock market, does that make you a gambler? Category:Home › Other • Pomegranates: A newly discovered superfood • Where did the joke why did the chicken cross the road come from and why is it funny? • Can mothers diagnosed with bipolar disorder make good parents? • Spiritual evolution of human consciousness • Tips for getting a college basketball scholarship • Living with Pseudotumor cerebri (PTC) • Caring for the caregiver • Technologys impact on society
