Almost all of us have came across such people who consider investing in Share Market as Gambling.
So today, let us get into the roots of that & figure out the Truth!
So let's start with talking 'bout Share Market in depth,
Ok! So now let's see;
So the first thing is that, Do we have any knowledge regarding something in Share Market or are we just blindly into investing in the stocks, just in the hope of earning a profit?
{We'll come to that within a while!}
Let's first understand a bit about the mechanism of the Share Market!
As of now, I'm just gonna cover a little bit about Share Market.... So to the people who are willing to know more about Share Market then I'll like to let y'all know that I've already written an article/blog which solely talks about Share Market.
So I'll recommend y'all to also read:
So a Stock Market AKA Share Market AKA Equity Market is a place where Companies gets listed to raise fund in order to expand their business(es).
& the fund is to be raised by the people who'll INVEST in/buy the shares of that particular Company.
Now the fact that there are different kinds of Companies— some are the well performing while some are just not....while some are large companies & some are small.
Well, due to that we have to make sure that we invest in a Company which'll pay off high returns....
For this we've gotta do some research based on that Company.... We have to take a look at the past income reports of the company (to know how much have the company generated over the past years), to have sort of an idea of what can we expect in the return. & we should also know about the debt of that company.
Golden Rule—
Never Invest In A Debt Driven Company!
If you want to learn how to invest in a good Company then make sure to leave a comment & Stay Tuned to RSPH Blogs - Finances!
Till then.... here are some articles you may— Also Read:
What Is Value Investing?
How To Calculate The Intrinsic Value Of A Share?
In fact we have DRHP's/RHP's on our Check List as if we want to know all about that company.
SO; we all are openly provided with several things we may gain knowledge from as already mentioned, there are DRHP's/RHP's, Company's past income reports, & nowadays there are several screener(s) available to us, as well!
Henceforth, we are not investing blindly, for real!
But there are some people who invest in Share Market without any knowledge & still hope to earn high returns....such people (the people investing without any knowledge) are the only reason to make investing in Share Market seem like gambling!
DRHP/RHP Basic Definition:
DRHP (Draft Red Herring Prospectus) &/OR RHP (Red Herring Prospectus) is basically a document made by a Company which has every single important detail about the Company & the Business Owner.... It is made because of taking approval from the Regulator Of The Capital Market.... for getting listed in Share Market. So DRHP/RHP also have all the vital information of the upcoming IPO.
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So this was just the basic defintion. But don't worry if you didn't get something here about what DRHP/RHP is.... Because we have a blog which solely talks about DRHP/RHP.
So you may Also Read:
What Is DRHP (Draft Red Herring Prospectus) / RHP (Red Herring Prospectus)? All About DRHP's/RHP's!
& now finally to answer the question....
Is Share Market Gambling?
If you are not knowledgeable about Share Market & are investing in it without any knowledge in hope of getting high returns then, YES!! We can say that investing in Share Market is no less than Gambling FOR YOU! & in fact only such people are the one's who make Share Market seem like if it's Gambling!
But as we've already known about that....the truth is different....Share Market is not Gambling....all you need is some knowledge & time & effort to research/know 'bout the Company....then you can be capable enough of generating a good amount of profit.
& now to gain some knowledge about how can you find a Good Company to invest in then make sure you STAY TUNED TO RSPH Blogs - Finances!
(to learn about doing a reasearch or to know more 'bout investing or finance....!)☺️
Anyways so that's all for today!
I hope you might have got the answer to your question!
You may leave a comment if you have something to say & also feel free to recommend me some more finance related topics so that I can write more articles/blogs based on them.
&
Make sure to share your views on INVESTING IN SHARE MARKET BEING CALLED AS GAMBLING!
Thanks For Reading!
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