Investment and gambling ppt
People often compare stocks to gambling, but how close are they really? Setting stop losses on your stock investment is a simple way to avoid undue risk. What is the difference between gambling and investing? "The distinction between investment and speculation in common stocks has always been a useful one and its. Many people who have never invested before see it as just another form of gambling Sophisticated content for financial advisors around investment.
What is the difference between speculation and gambling?
They also study the mannerisms and betting patterns of their opponents with the hope of gaining useful information. The rationale for high yield bonds is that their higher yields more than compensate for their added risk. Why Does it Matter? Subdiversification with the intention of earning a superior risk-adjusted return. Investors are risk-averse, while gamblers are risk-seekers. Companies and Sites Mentioned. Investors who purchase shares in companies that pay dividends are actually rewarded for their risked dollars.
Going All-In: Comparing Investing And Gambling
Share How many times during a discussion with friends about investing have you heard someone utter: Is this adage really true? Let's examine these two activities more closely and see if we can point out some of the key differences and also some surprising similarities.
Investing and gambling both involve risk and choice. Interestingly, both the gambler and the investor must decide how much they want to risk. Longer-term investors constantly hear the virtues of diversification across different asset classes. This, in essence, is a risk management strategy, and spreading your dollars across different investments will likely help minimize potential losses. Gamblers must also carefully weigh the amount of capital they want to put "in play.
If the odds are favorable, the player is more likely to "call" the bet. Most professional gamblers are quite proficient at risk management. In both gambling and investing, a key principle is to minimize risk while maximizing profits. Throwing It in the Pot Sports betting is probably one of the most common "gambling" activities in which the average person engages. From the weekly football office pool to the Final Four, sport betting is an American tradition.
Only by thinking about your betting habits will you realize that you have no way to limit your losses. When betting on sports or really any other pure gambling activity , there are no loss-mitigation strategies.
As early as 1987, Centers for Disease Control officials knew that AIDS was likely to remain a disease of gay men and inner-city drug users. His underwear was moist with pre-cum.
I was overcome with lust, I grabbed her firm ass and turned it around to face me. 485. If Kahn's model is correct, redirecting the 540 million now wasted on spreading the myth of heterosexual AIDS to high-risk groups - mostly gays and inner-city drug users - could wipe out new infections entirely.
The first and most obvious victims of the government's lies are the 40,000 or so Americans who this year will become HIV-positive, overwhelmingly gay men or poor, inner-city drug users and their sexual partners.
Investment, Speculation, and Gambling What exactly are the definitions of the terms "Investment" and "Speculation" and how can investors differentiate the two? Despite the diligent efforts of some of Wall Street's greatest minds, there are no universally accepted definitions. Some securities are referred to as speculative despite the fact that logically, they can be viewed as investments.
Additionally, investors frequently buy and sell securities like treasury bonds that are considered safe investments by most with entirely speculative motives. Adding to the confusion is the fact that in both the short and long run, investors frequently lose money while speculators frequently make money. Legendary investor Benjamin Graham considered the distinction between the two so important that "Investment versus Speculation" is the title and subject of the first chapter of his classic book The Intelligent Investor.
According to Graham, "The distinction between investment and speculation in common stocks has always been a useful one and its disappearance is a cause for concern. We have often said that Wall Street as an institution would be well advised to reinstate this distinction and to emphasize it in all dealings with the public. Otherwise the stock exchanges may some day be blamed for heavy speculative losses, which those who suffered them had not been properly warned against.
Operations not meeting these requirements are speculative. Fridson's "Compendium of Definitions of Speculation" included no less than 20 interpretations from assorted text books, dictionaries, encyclopedias, and other books. Fridson divided the definitions of speculation into four categories. The definitions either implied the use of or involved 1 price changes, 2 quick profits, 3 high risk, or 4 some combination all three elements.
The activity of forecasting the psychology of the market. The object of securing profit from knowing better than the market what the future will bring forth. John Maynard Keynes in The General Theory of Employment, Interest, and Money One interesting issue is the fact that bond rating agencies commonly use the term "speculative" when rating bonds.
From loan brokers, stock trading and investment banking to more shady activities such as betting, gambling and lotteries — all this emerged from within the EVE community. Lotteries are especially popular and they are easy to understand: Only one ticket can be enough to win the jackpot, billions and billions, rare or even unique ships; everything seems to be possible!
In New Eden everyone has the choice. Clever people, however, create their own choices and New Eden is the perfect place for that. Creating your own lottery seems to be an excellent choice and amongst all the past and present lottery organizations only a few have gained such a high popularity as Somerset Mahm with her micro lottery, SOMER blink.
The gambling itself takes place on an appealing website with a nice layout completely outside the EVE Online game client. Traditional lotteries usually offer many tickets, sometimes up to the thousands, and will take a week or longer until the winner is drawn. SOMER blink has changed this format by limiting the average lotteries to 8 or 16 tickets with just a few seconds or minutes to complete.
SOMER blink is quite popular within the EVE community, but it is also reported to be quite addictive and some people may have lost a fortune while others have won a fortune. Almost half a quadrillion ISK of prizes won on the site in total Over 58, registered users, with around 4, unique players participating each week Over 2. According to Somerset she was tired of the traditional lotteries and their sometimes slow turnaround times.
Compared to the now existing version of SOMER blink, the early version was pretty bare-bones, but over the following two years the lottery site was improved with new ideas and features. An estimated total of work hours were put into this massive project by Somerset so far. According to Somerset it was quite difficult to get into the lottery business, as distrust is quite natural amongst EVE Online players and lotteries can be easily used as vehicles for scams, but SOMER blink proves that with the right idea, proper implementation and good dedication you can archive even challenging goals.