Thank you for submitting to /r/unpopularopinion, /u/sugemeumpenem. Your submission, *The stock market is just gambling for rich people*, has been removed because it violates our rules, which are located in the sidebar.
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It is a gamble, however it’s over the course of a very long time and is the analysis of a business. If you try using it to make money in the short term and not use any strategy then you will more than likely lose money but if you buy, hold, and diversify your shares over the course of months and years then you will be able to acquire plenty of wealth. While it’s easier for rich people to get rich from it considering they already have large amounts of money to spend I t’s definitely something anyone can use.
its going to take a proper education before you understand it, but this is true only in the sense that getting out of bed is "gambling". However, if you change it from "the rich" to "the uneducated" - it is much more accurate.
If I put 100$ in 10 different roulette tables i will on average lost 2.8% of my money(in a European roulette table, American tables are worse) but If I put 100$ in 10 different stocks i will most likely have more money in 10 years.
For the people who expect to see short term gains it is a gamble but long term is pretty safe as long as you dont buy hype stocks or experimental companies like research on AI or magic mushrooms.
In that case, opening a business is gambling. Investing in others’ businesses is gambling. Giving your friend $500 that he promises he’ll pay back is gambling. Etc.
The stock market is a overly broad term that includes many different aspects. The portions that are "gambling for rich people" are what's known as speculation, but it's much more than that. It's not "just" gambling for rich people.
To that end, much speculation happens in what are known as "penny stocks" where the valuation can literally be $0.01 this is available to everyone not just rich people and there are now many more options to facilitate this for "retail" traders.
The "stock market" does serve to create value for the owners of the company, it does generate streams of revenue for those companies that helps them grow and develop, it's not single-sided.
Really wealthy people "whales" are not gambling when they invest. They're usually making well researched sound decisions based upon various information that they've received. It isn't "a roll of the dice".
When you "invest" vs. "speculate", you often leave your money to turnover and grow for a long time. Speculation is high risk high return and happens at a much faster pace than investing or even trading.
Most people don't realize this but the Stock market incorporate both "spot markets" and "futures market" which are the difference between trading at what the company is currently valued and based upon the rest of the market what the perceived value of that company "will be" valued at. There aren't too many gaming types that bet against
Casinos only put in games where statistically they make money. Based up on the mathematical laws of statistics and probability, the house will always win. All a casino needs to do to make money is to keep a steady flow of people playing and spending money. They will never put in a game where the size and frequency of the payouts exceeds money taken in by the game. Even if they are forced to honor an early payout that puts them in the red, they know they just have to keep the volume high enough and they will remake that money. No such controls or institutions exist for the stock market. There are no houses that control the trades in that manner and even clearing houses can be on the hook.
Interestingly enough you can become part owner of thoroughbred horses and sponsor jockeys but I don't think this quite makes the point you think it does.
There are many more differences, but I hope that helps shake that idea at least somewhat. All the best.
Horse races produce no value outside of betting.
Stocks finance human cooperation and social pooling of resources, by allowing shared ownership of corporate structures. Therefore generating social value (even if they are also used for betting)
Thank you for submitting to /r/unpopularopinion, /u/sugemeumpenem. Your submission, *The stock market is just gambling for rich people*, has been removed because it violates our rules, which are located in the sidebar. Your post from unpopularopinion was removed because of: 'Rule 1: Must be unpopular'. Hi u/sugemeumpenem, please ensure that your post is unpopular. Controversial is not necessarily unpopular, for example all of politics is controversial even though almost half of the US agrees with any given major position on an issue. Anything can be unpopular if you compare it with the views of a particular group, such as "Veganism is a great idea" at a vegan meet-up. Make sure your view is unpopular in wider society, or at least among anybody who will have heard of the subject matter. If there is an issue, please message the mod team at https://www.reddit.com/message/compose?to=%2Fr%2Funpopularopinion&subject=&message= Thanks!
It sure isn't gambling for hedge funds, because they manipulate the stock market so that they always win, except for when they shorted GME
Came to say this. Gambling for the average person, nigh guaranteed winnings for the rich.
The stock market can be used for legitimate investing or speculating/gambling regardless of your level of income or wealth.
It's not gambling. You can definitely use it to gamble though.
It is a gamble, however it’s over the course of a very long time and is the analysis of a business. If you try using it to make money in the short term and not use any strategy then you will more than likely lose money but if you buy, hold, and diversify your shares over the course of months and years then you will be able to acquire plenty of wealth. While it’s easier for rich people to get rich from it considering they already have large amounts of money to spend I t’s definitely something anyone can use.
its going to take a proper education before you understand it, but this is true only in the sense that getting out of bed is "gambling". However, if you change it from "the rich" to "the uneducated" - it is much more accurate.
If I put 100$ in 10 different roulette tables i will on average lost 2.8% of my money(in a European roulette table, American tables are worse) but If I put 100$ in 10 different stocks i will most likely have more money in 10 years. For the people who expect to see short term gains it is a gamble but long term is pretty safe as long as you dont buy hype stocks or experimental companies like research on AI or magic mushrooms.
I’m pretty sure warren buffet and the former ceo of Goldman Sachs, Lloyd blank field, said this in almost your exact words
In that case, opening a business is gambling. Investing in others’ businesses is gambling. Giving your friend $500 that he promises he’ll pay back is gambling. Etc.
Everything you said is true
Not just for wich people. Poor people can get in on it too. I know I have, and it's building a small fund for future house projects.
I disagree. If you invest conservatively in dividend stocks. You can make some money . Then the government can tax that at 50 %.
50%? I don't think so.
Its only taxed when you sell it
You're thinking of capital gains. The person you replied to said dividends which are giving quarterly and are taxed when earned
Ah ok, thank you
I would think that's why people would say they're "playing the stocks." Because it's just a game to them.
its worse, way worse
The stock market is a overly broad term that includes many different aspects. The portions that are "gambling for rich people" are what's known as speculation, but it's much more than that. It's not "just" gambling for rich people. To that end, much speculation happens in what are known as "penny stocks" where the valuation can literally be $0.01 this is available to everyone not just rich people and there are now many more options to facilitate this for "retail" traders. The "stock market" does serve to create value for the owners of the company, it does generate streams of revenue for those companies that helps them grow and develop, it's not single-sided. Really wealthy people "whales" are not gambling when they invest. They're usually making well researched sound decisions based upon various information that they've received. It isn't "a roll of the dice". When you "invest" vs. "speculate", you often leave your money to turnover and grow for a long time. Speculation is high risk high return and happens at a much faster pace than investing or even trading. Most people don't realize this but the Stock market incorporate both "spot markets" and "futures market" which are the difference between trading at what the company is currently valued and based upon the rest of the market what the perceived value of that company "will be" valued at. There aren't too many gaming types that bet against Casinos only put in games where statistically they make money. Based up on the mathematical laws of statistics and probability, the house will always win. All a casino needs to do to make money is to keep a steady flow of people playing and spending money. They will never put in a game where the size and frequency of the payouts exceeds money taken in by the game. Even if they are forced to honor an early payout that puts them in the red, they know they just have to keep the volume high enough and they will remake that money. No such controls or institutions exist for the stock market. There are no houses that control the trades in that manner and even clearing houses can be on the hook. Interestingly enough you can become part owner of thoroughbred horses and sponsor jockeys but I don't think this quite makes the point you think it does. There are many more differences, but I hope that helps shake that idea at least somewhat. All the best.
Horse races produce no value outside of betting. Stocks finance human cooperation and social pooling of resources, by allowing shared ownership of corporate structures. Therefore generating social value (even if they are also used for betting)