Comment I don't disagree, but there's a deeper point... (Score 1) 105
Average person -> Views stock market as a fairly risky thing. They don't know about portfolio, indexing, straddles, and such.
They only know "buy it if you think it's going to go up, sell it if you think it's going to go down".
And you are 100% right about them probably not having the finances to do this many times. RobinHood and fractional shares were an attempt to solve that problem but I'm not sure if it's in the mindset of the average bear.
I'm really talking about the people in the lower socio-economic tier -- the ones who buy a lottery ticket every week/day.
They could, with a phone app, easily place a bet on a prediction market that they FEEL they have a chance to win because the bets revolve around concepts that they are more comfortable with (Team X beats team Y, politician X wins, etc).
Ask a "normie" if they have a better chance at winning (and lower cost to participate in) each of these bets:
- Buy/sell a stock (low chance of being right, might forget to close their position, expensive to participate)
- Buy a lottery ticket (almost zero chance of winning, but also almost zero cost to play)
- Prediction market (cheap and in their view, less risky than stocks and higher chance of winning (50%) than a lottery ticket)