Question

Critically evaluate the following statement: Playing the stock market is like gambling. Such speculative investing has no social value, other than the pleasure people get from this form of gambling.

200 words required

Answer 1

Statement 1: Playing the stock Market is like gambling: Yes it is absolutely right, if you trade in the intra day i.e buy and sale happens in the same day. that transaction is complete gambeling there may be huge progit or hudge loss in intra dat trading. its noting but a gambelling as there are know parameter to pridict the exact opening and closing price of the stocks.

Statement 2: such speculative investing has no social value otehr than the gambeling Pleasure: this statement is partlly incorrect. As investments in the stock market that too in a good to morderate stock, made for quite stable period of say 1 year to 2 year will surly give the returns which simultanousely increase the socal value. if you see the sensex value today even in the pendamic, its value is surely more than what it was before 10 years.

However if we invest the amount for short period of 2 to 3 days and it gives the temporary return of say 5% which is fluctuating every day by 2% to 5%, then it is noting but a gambeling when we try to sell the stock immediately when price trigger at return of 5%. on the other side when we sell the stock which was invested long back, then at the time of selling variation of 4 to 5% shall not be bothered as the stock itself had got increase of substatntial price over a period of 5-10 years.