Stock Market = Gambling?

[Vpanesar]

SSA,

Most people know that Gambling is prohibited in Sikhi, in other words sikhs are suppose to make thier money from Kirat di kumai. Would trading in the stock market be going against the sikhi way of making a living?

[Guest Narinder Singh]

Yes, there is no difference between stock trading and gambling in a game of poker. Stocks are considered more socially acceptable simply because the "elite" of society primarily take part in it, you'll rarely see your blue collar working class trading stocks.

Fateh.

[B4ND4]

We would buy stocks with money, if this money is hard earned then one should be satisfied with that money and refrain from making quick money(from stocks). I don't think the money made by investing in stocks would qualify as kirat di kamai.

Moreover, if someone loses money in stocks they invest again to make up for the lost amount and hence gets engulfed in "Maya da chakkar", thats definitely not Sikhi.

[proactive]

I've come across such explanations before but I disagree. Investing in the stock market is not the same as gambling.

Look at the two scenarios

You go to cash and carry and buy 100 items for £100. You've done your research and set up a stall and sell each item for £2 each thereby making a 100% profit. £200 for an outlay of £100. That's called Trading or Vapaar in Punjabi.

You do your research and find out that company called Sikhsangat Corp is doing well and selling a lot of their products. You buy shares at £1 each and when the company announces its annual profits which have increased, the value of the company goes up and your shares increase to £2 a share.

I can understand if stock trading just involved picking a company out of thin air and hoping for the best, that's gambling but the Kirat comes in when you spend hours doing research into the company.

What some people forget is that stocks are offered in IPOs as a way of raising money for new ventures and by having shares in a company you are supporting a particular sector of the economy. Having said that I wouldn't buy stocks in companies that produce weapons or that involve gambling such as casino stocks.

[mani singh]

Yes, there is no difference between stock trading and gambling in a game of poker. Stocks are considered more socially acceptable simply because the "elite" of society primarily take part in it, you'll rarely see your blue collar working class trading stocks.

Fateh.

no paji i see that as i wrong, i recon there is a big difference between stock market and gambling. i invest in stock all the time, and consider this two be miles different from gambling. As in the stock market u are investing (not gambling), u are buy a proportion of a company and u own the percentage of that company and if that company performs well u gain returns called divined (same as interest really, but may only be received if company performs well).

This is the similar to investing in the property market. How dou know that u will receive good rent? How u know that u can sell this property 4 a profit?

gambling is total different this is where u bet against someone (usually the house) about winning or lossing. But nothing like this occurs in the stock market. if u think a company is going to make a profit then you buy share, this allows that company to raise capital to invest in stock or spend the money where required to gain that profit level required and pass the returns two the owns (people who own the shares)

the only thing that comes under gambling is investing in a stock that u dnt know about or spread bet.

[king singh]

So a sikh cannot become a stockbroker?

A stockbroker invests on behalf of his clients, so it's not the stockbrokers money; Is it still allowed?

[Heera Singh]

'quick money' and 'for the elite'?? shows how little about the stock market y'all actually kno...

yes u can be a stock broker...

when buying stocks... ur INVESTING into a company... hopin dat company does well.. and if they do well enuff you get extra $$ as "thanks" from the company in the form of dividends, interest or you can get capital gains by sellin the stock for more den u bought it... AND... u have part ownership of dat company...

also.. by investing in companies (i.e. buying stocks, bonds etc...) you're helping to stimulate the economy.. so companies can use the $$ u invested to either create more jobs, or buy new machines or start new projects etc... etc...

the stock market is not a GAME like poker...

it wud be kinda 'gambling' if u jus started buyin 100's of stocks at random (i.e. just pickin them out from the page in da newspaper)... buh even den.. i's nah really gambling.. i's jus stupidity

[Heera Singh]

oh.. din ready mani singhs reply... good reply.. hehe... kinda said da same ting u did

[Harmeet_Singh]

Investing is not gambling. Without people investing in equites like shares and bonds many companies would never be able to grow. All the household brands we know grew to the size they are because people were prepared to invest in them.

Investing in stocks and shares is a fundemental part of teh modern mixed economy, stockbrokers, investment banks all allocate capital to the most effecient firms.

Whenever i invest i never aim to make a fast buck by simply hopping the markets goes in my favour. Gambling is when you try your luck, but investing is very much different. Investing in stocks is the same as starting up your own business.

Its like owning part if a business, you vote on issues affecting the company at AGM's etc..

Things like spreadbetting and CFD's, could be argued are gambling but i dont see why because you have to know what you are doing.

[Vpanesar]

You make a good point Harmeet Singh in that investing is like owning a business. investing in stocks is investing in a company, so it may not be like gambling, but i think what our gurus really meant in not to gamble is that gambling requires no hard work, no physical labour, no sweat, but just luck and money, if someone else can elaborate on why we're not allowed to gamble, i would appreciate it. Anyways, The real question is does investing, owning bussinesses, owning property satisfy the our conduct way of making money and are we not suppose to make our money out of only physical labour? Or is mental hard work like trying to research a company equal to kirat di kumai????