Friday, January 3, 2014

What's the Difference Between Buying Lottery Tickets and Buying Stock?

A lottery is pure chance/luck.

If you buy stocks the right way, you research the company, understand the service or product they make, understand how they will make money doing it, and learn about the company's management and how they perform. If you do those things, you make an informed decision to invest in the company because you have confidence that they will succeed.

If you don't do those things before buying stock (investing) in a company, then it may be about like buying a lottery ticket.

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