How is investing different from gambling?

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Due to the No Arbitrage Principle, in theory, there should always be risk when you invest, however investing is seen as smart common sense which every adult needs to do whereas gambling is a poisonous addiction we need to curb, what’s the difference? To me, it seems that only when the market is exploitable and not fair, is there a true difference, apart from the immediacy of the results of many types of gambles vs the drawn out nature of investments

In: Economics

8 Answers

Anonymous 0 Comments

When you gamble, it is against an entity who is setting the odds in their favor. So no matter what, over time you will lose more than you win (if you continue to play).

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