20.7k views
16 votes
How is speculation and
buying stocks on margin
similar to gambling?

User Alamin
by
7.0k points

1 Answer

10 votes
Speculation and gambling are two different actions used to increase wealth under conditions of risk or uncertainty. Gambling refers to wagering money in an event that has an uncertain outcome in hopes of winning more money, whereas speculation involves taking a calculated risk in an uncertain outcome.
User Laura Stone
by
6.5k points