Question:
If gambling is a bad thing in both halacha and hashkafa, what is the heter to “play” the stock market? What is the difference between gambling and investing in stocks?
Answer:
Your point is correct in a way, because playing the stock market does involve considerable risk, with unknown factors. Although the term “gamble” is used when someone takes a risk, however doing commerce in the stock market not the same as gambling.
There are two problems with gambling. It isn’t the normal civilized way that people make money- they do it in a way that they are contributing to the world, and this form of livelihood is not contributing to the world. Secondly the person never meant to risk his money when getting nothing in return, and therefore the person who has to pay because he lost the bet feels that he was cheated. Therefore it is similar to stealing. When a person buys stocks he is purchasing a part of a company, and making an investment which should be no different than any other investment. Besides it isn’t as if he isn’t getting anything. He now has a share in a company, and if he waits the stock may go up. His decision to take a loss is his personal decision.
Sources:
Sanhedrin 24b
