Post History
#3: Question closed
by
Peter Taylor
·
2026-08-27T19:47:34Z (21 days ago)
#2: Post edited
by
Mark V
·
2026-08-26T19:30:03Z (22 days ago)
- Who’s correct, and why? [Vadim
- Ponomarenko](https://money.stackexchange.com/users/42066/vadim-ponomarenko) contends
- >[From a mathematical expected-value standpoint, there is no difference between gambling (e.g. buying a lottery ticket) and investing (e.g. buying a share of stock). The former probably has negative
- expected value while the latter probably has positive expected value, but that is not a distinction to include in a definition (else every company that gives a bad quarterly earnings report suddenly
- changes categories).](https://money.stackexchange.com/a/63930)
- But [Ryan](https://money.stackexchange.com/users/11736/ryan) gainsaid
- >I downvoted this. The first sentence is incorrect. By the way, a stock that has recently lost value has NOT necessarily also lost expected future value.
Why is, or isn’t, gambling (e.g. buying a lottery ticket) the same as investing (e.g. buying a share ofstock) in terms of expected value?
- Who’s correct, and why? [Vadim
- Ponomarenko](https://money.stackexchange.com/users/42066/vadim-ponomarenko) contends
- >[From a mathematical expected-value standpoint, there is no difference between gambling (e.g. buying a lottery ticket) and investing (e.g. buying a share of stock). The former probably has negative
- expected value while the latter probably has positive expected value, but that is not a distinction to include in a definition (else every company that gives a bad quarterly earnings report suddenly
- changes categories).](https://money.stackexchange.com/a/63930)
- But [Ryan](https://money.stackexchange.com/users/11736/ryan) gainsaid
- >I downvoted this. The first sentence is incorrect. By the way, a stock that has recently lost value has NOT necessarily also lost expected future value.
- Why is, or isn’t, gambling (e.g. buying a lottery ticket) the same as investing (e.g. buying a share of stock) in terms of expected value?
#1: Initial revision
by
Mark V
·
2026-08-26T19:29:45Z (22 days ago)
From an expected-value standpoint, is gambling the same as investing?
Who’s correct, and why? [Vadim Ponomarenko](https://money.stackexchange.com/users/42066/vadim-ponomarenko) contends >[From a mathematical expected-value standpoint, there is no difference between gambling (e.g. buying a lottery ticket) and investing (e.g. buying a share of stock). The former probably has negative expected value while the latter probably has positive expected value, but that is not a distinction to include in a definition (else every company that gives a bad quarterly earnings report suddenly changes categories).](https://money.stackexchange.com/a/63930) But [Ryan](https://money.stackexchange.com/users/11736/ryan) gainsaid >I downvoted this. The first sentence is incorrect. By the way, a stock that has recently lost value has NOT necessarily also lost expected future value. Why is, or isn’t, gambling (e.g. buying a lottery ticket) the same as investing (e.g. buying a share of stock) in terms of expected value?