1. Investment Vs Speculation Basis Investment Speculation4.Insider trading analysis Not possible Based on insider trading transaction happen5.Stability of Income Very stable Uncertain and erratic6.Sources of income Earning of enterprises Change in market price7.Length of commitment Long run For a short time period PRESENTED BY:ANU MISHRA 8.
2. Difference between Investment, Speculation: The main difference between speculating and investing is the amount of of risk undertaken in the trade. Typically, high-risk trades that are almost akin to gambling fall under the umbrella of speculation, whereas lower-risk investments based on fundamentals and analysis fall into the category of.

One of the key differences between investing and gambling is diversification. Investing provides you with the opportunity to spread your risk across all asset classes, whereas gamblers throw their capital into a single pot with no loss mitigation strategy.

American Auto Brokerage has been serving Connecticut insurance consumers for 25 years. Our customers’ satisfaction is our #1 priority. Over the years this philosophy has enabled us to develop strong relationships with our customers who return year after year. We welcome you to become a part of the American Auto Brokerage family. In this short article, we hope to show just what insurance is, but also what makes it different from some other monetary schemes that are popular!

The Basics of Insurance – Where, How and Why

Insurance is a means of protection from financial loss. It is a form of risk management primarily used to hedge against the risk of an uncertain loss. An entity which provides insurance is known as an insurer, or insurance company. A person or entity who buys insurance is known as an insured.

Over time, many kinds and forms of insurance have evolved. The property, health and vehicle insurance are the most commong kinds, and it is easy to see why. All three things are extremely valuable, and we’d go at great lengths to protect their integrity. A damaged vehicle or home is a considerable strain upon one’s assets, and insurance is used as a way to reduce overall life stress by securing them.

The Biggest Question of All

Of course, it won't take long until the people ask the most important question of all, and that is: What is the difference between insurance and gambling? Why is insurance usually allowed whereas some countries take very strict meausres against any sort of gambling endeavour?

Legally and culturally, there is a clear distinction between gambling and insurance. Economically the difference is less visible. Both gambler and insurer agree that money will change hands depending on what transpires in some unknowable future.

At surface level, insurance really looks like gambling. Two parties agree on the consideration (by calling that wager a premium instead), the type of chance (by using expectations of when the insured might die, for example), and a prize (by referring to the winnings as a death benefit). It's a consolation prize for the beneficiaries but a prize nonetheless.

The risk of losing money gambling to me seems less relevant than the risk of getting addicted to gambling and making irrational decisions. No one believes there's a problem with car addicts that the government needs to solve. There is, however, a real problem of gambling addicts, not too different from heroin addicts.

You can’t win with insurance; “break even” is the best you’ll get. On the other hand, your financial losses are limited with insurance. From a statistical perspective, gambling and writing an insurance policy are the same where we give a price to an odd. The main difference lies in their different purposes.

The purpose of insurance is to restore the insured to his original position, not to afford the injured person the possibility of making a profit. There might be gain in gambling. In insurance there is no possibility of gain.

However, that does not mean that there weren’t (unsuccesful) attempts to merge both gambling and insurance. Two inventors received a patent for a method and apparatus by which a gambler can protect against excessive losses. The invention involved setting up a machine inside the casino where gamblers could choose the amount of coverage needed. There is no record of this invention being installed or put into use at any casino.

Gambling insurance is quite unusual in practice because it may encourage a policyholder to place bets recklessly, compounding losses. As with all insurance, one must pay a premium to receive the coverage.

As we can see from the explanations above, there are different ways to approach gambling. However, it not being allowed in certain countries is not a reason not to visit and play real money casinos; thanks to the magic of modern technology, all of them are just a click away!

Investment can also be well known from gambling and some of the examples of gambling are card games, lotteries, and horse race. Gambling includes high risk and not only for high returns but also the associated excitement and it is unplanned, unscientific without the knowledge of the nature of the risk involved.

Investment is defined as the employment of funds to acquire certain assets after due diligence for mid to long period. Investments deal is generally done for real assets. Most of the people are nervous about investing money in the market because they believe that investing has more to do with luck.

People also believe their ability to earn a return on their investment comes down to pure chance such as the flip of a card or roll of the dice. Investment is being done for the creation of wealth and also investments are considered as gambling.

Investors and gamblers both are want to put more money in their pockets and also the investing and gambling could not be more different. If an individual is investing without fundamental analysis, based on market sentiments and if an individual who invests with proper fundamental analysis for a longer period of duration can be defined as an investor.

Investment Vs gambling:

Here you are going to see the difference, let’s see about the difference between gambling and investing,

Leverages: Investors are allocating money from their resources for the investment and this applies mainly to assets to the equity market. Generally, gamblers are allocated their own money and bet for entertainment.

Price of asset: Gambling id based upon odds and bets are placed only on assumptions and at the same time investor does not look at the price of the asset rather it looks at the asset itself to determine the decision to allocate money now to get money back later on.

Time horizon: Gambler placed a bet for immediate gain and on the other hand investors allocate money for a particular asset for a longer period.

Risk analysis: Investors do have long term risk and return perspective and also they will rely on the fundamental analysis of financials. This can affect the price of the asset class and their decision to invest in a particular asset. It is based upon the certain fundamental values associated with the asset.

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But the gambler risk entire capital on bet and relay mainly on luck and they are highest risk-takers and ready to lose original investment also.

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Financial profile or funds availability: Investment is stock trading gambling, and their funds or looking to create wealth and on the other hand gambling has wealth and looking to have fun.

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Finally, invest wisely after proper analysis of the company to secure hard money for fairly good chances for the creation of wealth and gambling should be avoided, in most of the cases gambling is not legal. These are the basic thing about investment vs gambling and it will be useful for you before investment.