Difference Between Investment And Gambling
The main dissimilarities or difference between investment and gambling can be described as follows:
1. Introduction
Investment: An act of purchasing assets or different forms of capital instruments with the aim to gain stable income in the future.
Gambling: An act of wagering money or funds on uncertain and risky activities with the aim of earning additional money instantly.
2. Objective/Purpose/Aim
Investment: To generate constant return in the future.
Gambling: To earn additional income instantly
3. Time Horizon
Investment: It is done for the long period of time (more than one year)
Gambling: It is a short term activity (only for few hours or for few days)
4. Risk Involved
Investment: It is less riskier than gambling
Gambling: It is very riskier than investment
5. Expected Return
Investment: Investor expects average return on his investment
Gambling: Gambler expects very high return
6. Certainty Of Income
Investment: Income is more certain stable than gambling
Gambling: There is no stability and certainty in income.
7. Based On
Investment: It is based on knowledge, skill and hard work of the investor
Gambling: It is fully based on luck and chance
8. Legality
Investment: It is 100% legal activity
Gambling: There are several legal restrictions
Also Read:
Also Read:
9. Nature/Attitude Of Investor
Investment: Hardworking, cautious, disciplined and futuristic in nature
Gambling: Careless and aggressive in nature
10. Examples
Investment: Shares, debentures, bonds etc
Gambling: Lottery, cards, casino, betting etc.
Investment Vs Gambling (Comparison Chart)
I hope this post is helpful to understand the difference between investment and gambling and to make comparison between them.
Investment Vs Gambling (Comparison Chart)
Basis
|
Investment
|
Gambling
|
Introduction
|
Purchasing financial instruments and assets to gain profit in the future
|
Wagering money in uncertain activities to gain instant profit
|
Aim
|
Constant future income
|
Immediate return
|
Time Horizon
|
Long
|
Short
|
Risk Involved
|
Less
|
High
|
Expected Return
|
Average
|
Very high
|
Income
|
Certain and stable
|
Uncertain and unstable
|
Based On
|
Knowledge and skill
|
Luck and chance
|
Legality
|
Yes
|
Several restrictions
|
Investor's Attitude
|
Cautious and disciplined
|
Aggressive
|
Examples
|
Share, bond, debenture etc
|
Card, lottery, betting etc.
|
I hope this post is helpful to understand the difference between investment and gambling and to make comparison between them.
