Why do many people like to buy lottery tickets rather than investing into stocks anyway?
- tiescoreLv 611 months ago
Who ever said humans were logical? "A fool and his money are soon parted."
- 11 months ago
People are wasting their money by purchasing lottery without even realizing that they have completely wasting their money. Because to get money through lottery is a way riskier than earning through stocks.Source(s): Jack Stewart
- 11 months ago
Hello! Lottery tickets are always a chance to win a round sum. And investments in stocks require not weak analysis skills, iron nerves and a huge list of advantages) I sometimes buy tickets myself and often win, of course not large amounts, but still nice. In general, if you still want to tickle - I recommend the service.
- StephenWeinsteinLv 711 months ago
It's more fun for them, it's simpler, they don't need to put in as much money at a time, and they find out whether they won or lost sooner.
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- 11 months ago
So many people want to get rich quick, and it's very hard to do that if you are investing in stocks correctly. You can do very well as an investor over time, but it's boring. A lot of poor people buy lottery tickets because they don't understand how to build wealth, they don't budget, and think it is their only way to become successful.
t's a really sad system. Not surprising that so many state governments fully embrace it to fund their various programs, while also claiming to care about the poor.
- JudyLv 711 months ago
Lots of people to both, investing a lot more than they spend on lottery tickets.
- AmyLv 711 months ago
Suppose someone buys a $2 lottery ticket every week for their entire adult life. That adds up to around $5,000.
If they invested that $5,000 in stock, they might turn it into $20,000. While this seems like a nice chunk of money, it's a pathetic amount to be your entire life savings. And that was assuming they could even find a broker willing to invest in $2 increments.
On the other hand, if they win the lottery then they turn that $2/week into millions.
The people who buy lottery tickets regularly (i.e. not just as an occasional bit of excitement) are the people with so little income that they have no realistic way to save for retirement. Winning the lottery is a long-shot, but investing in stocks is a guaranteed failure.
- Anonymous11 months ago
The people who play the lottery every day are the same ones who don't have any money saved even in a savings account. One emergency and they are off to the Pay Day Loan store.
It takes some brain power and some effort to learn about the stock market, trust me, they are afraid of this and these people are also the same ones who don't take advantage their employer's 401K's because they don't understand how it works.!
- 11 months ago
Because the stock market is needlessly complicated in comparison to a lottery ticket. Stocks should be simple. I purchase a certain amount of stock at a certain value. If there are y shares available and I purchase x shares, then I should technically own x/y of the company, and I should receive an appropriate cut of the profits in the form of a dividend until I sell my shares. That's pretty straightforward.
But then, somebody figured out that when a 1,000 people each have their money invested into a 1,000 different companies, then when a company fails, the person who owned stock in that company loses everything. Better to spread your eggs out, right? So they created things like mutual funds and index funds. The 1000 different people don't own shares outright. Rather, they own pieces of shares with each other. When 1 company fails, they all take the same hit, but nobody goes bust. But now it's getting complicated.
And then, somebody figured out a way to bet on the behavior of a stock. They can pay insurance premiums and if the stock does what they want, then they win big. But nobody has the kind of money available to pay out those massive insurance claims, so the companies that put out the insurance policies borrow against the futures of the massive indices of stocks that they own. They're betting on a bet. And the rabbit hole only goes deeper. It gets so convoluted and reckless, that it's truly baffling that nobody has been tarred and feathered yet.
And all of this is predicated upon the notion that if you hand your money over to a stranger, then that stranger will do everything in their power to increase that money for you, which makes no sense whatsoever. There's nothing really stopping that stranger from just letting you hang as they abscond with what they managed to fleece out of their investors.
Compare that to the lottery. With the lottery, I choose what numbers to play. I choose what scratch-off tickets to buy. I'm told up front what I stand to gain, what I stand to lose, and what my odds of winning are. Nobody is betting on the outcome of a lottery drawing other than the people who purchased their tickets. The Lottery, the casinos, horse racing, sports betting, dog racing, etc... is more honest with the consumer than the stock market. A bookie oftentimes has more honor than a broker. So I'll bet $2 once in a while and I'll let the rich people scrabble for each other's wealth in the stock market. Sure, they'll win much more than I ever will, but I won't be a miserable retch, motivated solely by the idea that money solves everything.
- JoeLv 411 months ago
its fun to gamble