Is Investing in the Stock Market a Form of Gambling?

     In a recent sermon, I noted that participation in gambling violates several Biblical principles including, but not limited to, the golden rule (Matt 7:12) and proper stewardship.  Gambling does not involve a product or a service.  It is based solely on money, is often times driven by greed and/or covetousness and can be very

addictive.  Those participating in gambling are hoping to get something for nothing, a concept which is foreign to the scriptures.  

     In regards to the topic of gambling, there is a question that is somewhat common:  “Is investing in the stock market a form of gambling?”  That is a good,

reasonable question that certainly deserves our consideration. 

     First of all, we need to remind ourselves of the fact that there are words that we commonly use in a variety of ways.  The word “gamble” is one such word.  Obviously, we can apply the word to the act of gambling, whether at a casino, a race track or elsewhere.  We can also utilize this word in regards to taking some degree of risk.  In that sense of the word, many things are “a gamble,” including driving a car across town.  After all, there is some risk involved.  Now consider the idea of being a business owner, a farmer, etc.  Many things could be labeled as “a gamble.”  So, in this way the word “gamble” can be tied to activities that don’t inherently violate the scriptures.  Such is the case with reasonably investing in the stock market.

     First of all, when one purchases stock, there is not a desire for others to lose money but, to the contrary, a desire for others to profit.  We hope that the companies in which we invest do well.  Such is beneficial for the management, employees and stockholders.  The investments made by stockholders through the purchase of stock can help make that happen.  Secondly, unlike gambling, you do get something in return for your money.  As a stockholder you actually have a degree of ownership within that company (however small that degree may be). 

     Is it possible to lose money through investing in the stock market?  Sure.  Hence, in that manner, it is “a gamble” (i.e. involves a degree of risk).  Yet, clearly, there are distinct differences between the act of gambling and reasonably investing in the stock market.  So, when investing, one should do so carefully and
prudently - in accordance with the principles found within scriptures, including but not limited to, good stewardship.