Why is investing not seen as the same way as it is gambling?
In: Economics
While both include Risk it might help to conciser the premise behind each, and the influence of Skill vs Chance. Spoiler: Skill good; Chance bad.
Investing grew from the idea of giving someone a loan in exchange for a stake in the business. If the business succeeded, then you were paid based upon the profits, relative to your stake. If it failed, then you lost the value of your Loan. While chance plays a part in a business’ success or failure, it is generally believed that Skill plays a greater part.
Gambling grew out of the ancient equivalent of flip a coin. You place your stake in the pot and a random event occurs. If it’s favorable, you take the pot. If not, you lose your stake. While more complicated forms of gambling have been developed that rely more heavily on Skill, Chance is still seen as the driving force. Even in games such as poker the skill comes in managing the outcome of chance.
Side note: Pinball machines were banned for a while because they were considered gambling. Eventually, the idea that the game was one of skill and not chance helped changed that. ([Link to article](https://www.history.com/news/that-time-america-outlawed-pinball).)
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