MBA (Finance) – IV Semester, Investment and Portfolio Management, Unit 1.1
Investment Vs Gambling
Investment has also to be distinguished from gambling. Typical examples of gambling are horse races, card games, lotteries, etc.
Investment Vs Gambling
Investment has also to be distinguished from gambling. Typical
examples of gambling are horse races, card games, lotteries, etc. Gambling
consists in taking high risks not only for high returns, but also for thrill
and excitement. Gambling is unplanned and non scientific, without knowledge of
the nature of the risk involved. It is surrounded by uncertainty and is based
on tips and rumors. In gambling artificial and unnecessary risks are created
for increasing the returns.
Investment is an attempt to carefully plan, evaluate and allocate
funds to various investment outlets which offer safety of principal and
moderate and continuous return over a long period of time. Gambling is quite
the opposite of investment.
