Comment No it isn't. It's just gambling. (Score 1) 44
The difference between the stock market and almost every other 'asset' is something called "Positive Sum Game". Gambling is a "Negative Sum Game." Much of the rest are "Zero Sum Game"
Negative Sum Games are games where someone takes money out of the system. Like a casino offering a poker game.
Zero Sum Game is when no one takes money out or puts money in. If you have a office bet and ten people put $50 bucks in and the winner takes 10*50= $500, that is a zero sum game.
None of the following are Positive Sum games: Pokemon, Art, Bitcoin, Commodities, etc.
The stock market however is a Positive Sum Game. Profitable businesses increase the value of the stock. Some use these profits to pay Dividends, others to buy assets or even buy out other companies. So the Net Sum of money in the system keeps going up.
This is a huge difference - the exact opposite of going to a casino where the casino always wins. If there was a casino that instead of taking a profit every day kept putting more money into the poker game, you would definitely play with them rather than real casinos.
That is why the Stock market is an Investment rather than gambling. The businesses put more money in than they take out.
Positive Sum Games are better than the other kind.