Site Menu
 

Are Stock Brokers just Gamblers?

However, hardly a question for philosophers, there is some merit in trying to establish if stockbrokers are just more respectable versions of the card playing, craps rolling gamester. Certainly, both occupations make a study of odds, and both professions stand to make or lose a lot of money in a very short time. So the question becomes are stockbrokers just gamblers in a nice suit and a fancy tie?

Definitions

According to dictionary.com, a gambler is a person who plays at any game of chance for money or other stakes. A stockbroker on the other hand is defined as one who buys and sells stocks and other securities for customers. At first glance, the definitions seem pretty far apart but as we remember that a stockbroker buys and sells stocks with the hope that those he buys will go up in value and those he sells will go down, we realize that a stockbroker is also playing a game of chance. Could it be that the major difference between a stockbroker and a gambler is that the stockbroker bets with other people’s money? There’s many online gambling houses such as M88 and Sbobet who some might say pray on the addicts out there.

Syndicates vs. Brokerage Houses


When a group of gamblers join together to influence the outcome of an event and increase their odds, they call it a syndicate, when a group of stockbrokers come together to do essentially the same thing, it is called a brokerage house. Essentially a gambling syndicate increases a gambler’s odds by betting in a number of games or races, so a number of wins can cover one big loss. A stockbroker increases his client’s money, by ensuring his portfolio is diverse enough to cover a loss in one area of the market as well. Fortunately, both professions are carefully monitored by watchdog groups to ensure that cheating and fraudulent activities remain at a minimum.

Though not exactly the same thing, it would be an interesting experiment to see how a group of vacationing stockbrokers performs at the tables of Vegas and Macau. Conversely, it would be fascinating to watch the world’s biggest gamblers take on Wall Street. Now that is a reality show!