The Biggest Stock Market Myths – Part One
Just like in any other sphere of life, there are certain myths surrounding stock business. People tend to believe in them without reasonable proof. Here are a few common myths about the stock markets that often arise.
Investing = gambling
The most common misapprehension is that investing in stocks is just like gambling. Investing and gambling couldn’t be more different. Explained in a few words – investors think of shares as a trading vehicle, and they forget that stocks actually represent the ownership of a company. Investors are constantly trying to assess the profit that will be left for shareholders. Gambling, on the other side, is a zero sum game – it takes money from a loser and gives it to a winner. There is no value creation in this process.
Stock Market Is For Rich People
Numerous studies have shown that claims like “Stock Market is an exclusive club only for brokers and rich people” are false. The advent of the internet has made the market much more open to the public than ever before. All those data and research tools that can be found online are now available to every individual, not only to brokers (like they were in the past).