Difference Between Gambling And Speculation
The major dissimilarities or difference between gambling and speculation can be pointed out as follows:
1. Introduction
Gambling: An act of deploying fund on risky an uncertain events such as card, casino etc. with the hope to gain additional money.
Speculation: An act of purchasing risky securities and assets to earn significant amount of profit.
2. Objective
Gambling: To make profit instantly
Speculation: To make profit in the near future
3. Skills And Knowledge
Gambling: It does not require any specific skills and knowledge because it depends on chance or luck
Speculation: It requires skills and knowledge about the nature of investment and expected return.
4. Hard Work
Gambling: No hard work is required for gambling
Speculation: Hard work is required
5. Risk Involved
Gambling: It is totally risky activity
Speculation: It involves less risk than gambling
6. Legality
Gambling: There are several legal restrictions in gambling
Speculation: It is 100 % legal activity
Also Read:
Also Read:
7. Examples
Gambling: Card, casino, lottery, betting etc. are some examples of gambling
Speculation: Investments in financial or capital instruments
8. Time Horizon
Gambling: Very short period (only for few hours or some days)
Speculation: It is performed for longer period (maximum up to 1 year)
Gambling Vs Speculation (Comparison Chart)
I hope this post is helpful to understand the difference between gambling and speculation and to make comparison between them.
Gambling Vs Speculation (Comparison Chart)
Basis
|
Gambling
|
Speculation
|
Introduction
|
Wagering money in risky event to earn additional money immediately
|
Deploying fund in risky assets and financial securities to gain profit
|
Objective
|
Instant profit
|
Profit in near future
|
Skill/Knowledge
|
Not required
|
Required
|
Hard Work
|
Not required
|
Required
|
Level Of Risk
|
Very high
|
Relatively low
|
Legality
|
Several restrictions
|
Legal
|
Time Horizon
|
Very Short
|
Longer than gambling
|
Examples
|
Casino, lottery, betting etc.
|
Capital instruments
|
I hope this post is helpful to understand the difference between gambling and speculation and to make comparison between them.
