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Is the Stock Exchange a Casino?
Author(s) -
Arthur Terry
Publication year - 2000
Publication title -
economic affairs
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.24
H-Index - 18
eISSN - 1468-0270
pISSN - 0265-0665
DOI - 10.1111/1468-0270.00256
Subject(s) - stock exchange , stock (firearms) , monetary economics , investment (military) , abstinence , business , economics , finance , engineering , law , mechanical engineering , politics , political science
‘Primary investment’ is the permanent addition to productive capacity which follows abstinence or saving. It is risky but the effects of uncertainty operate around the risk‐free interest rate, not around an average of nil or worse as in a slot machine. Investment, as opposed to gambling, implies that the investor ‘does his homework.’ Gambling via the stock exchange has increased, especially because of the expanding role of institutional investors as agents for savers.