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One of the more common recurring myths is that the stock market is basically some kind of gambling.
It’s a common trope in movies and TV shows. But the only way gambling is involved is that several gambling companies have shares that are traded on stock exchanges. If the house always wins, then maybe one of those would be an interesting investment.
The reality of the stock market is that it’s an investment vehicle. This means that on average more money comes out of it than goes in. In other words, it’s a positive-sum game; while gambling is a negative-sum game.
The issue for stock market traders and investors is being on the positive side of the equation.
How It Works Depends on What It Is
Stocks are fractions of ownership in a company.
To get a partial ownership of a company, you have to invest in it, and in exchange you get a comparable portion of the profit. If the business is run properly, it will turn a profit.
You’ll get more money back from the company th...
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