Reference no: EM132757452

Based on past experiences and personal values, people have different beliefs about gambling. Some view it as a moral issue and consider luxurious casinos to be deceptive and eager to take money out of the hands of the naïve. Some people enjoy the excitement of watching the dice roll and view a night in the casino or an occasional scratch-off ticket as nothing more than a recreational experience. Also, while some people are simply disinterested in any form of gambling, there are others who become addicted to the prospect of being able to "win it all back next time" and allow gambling to destroy their lives. Just as there are diverse perspectives on gambling, there are also many different perspectives on how people connect the concept of investing to the concept of gambling. Some people make no connection between the two, defining a clear distinction between a random act of chance to a calculated investment decision. Others, however, cannot distinguish the difference, considering the stock market to be nothing more than a casino in disguise.

Problem 1: How would you describe the difference between gambling and investing?

Problem 2: What are the risks and potential pitfalls of investing that might cause someone to make the statement that "playing the stock market is like gambling"?

Problem 3: What are 2 or 3 ways that an individual or organization could mitigate the risks and potential pitfalls of investing?