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Why do most of the people in India still see share market as gambling?
Seeing Stock Market as Gambling is a complex issue in most Indians views. The 5 major contributing factor to such issue are as under :- 1. Lack of Financial Literacy • Misconceptions : Many individuals do not have a strong understanding of how the stock market works and get effected by become-early-Read more
Seeing Stock Market as Gambling is a complex issue in most Indians views.
The 5 major contributing factor to such issue are as under :-
1. Lack of Financial Literacy
• Misconceptions : Many individuals do not have a strong understanding of how the stock market works and get effected by become-early-rich schemes.
• Lack of knowledge : Many people lack basic financial knowledge, including how the stock market works, the difference between investing and trading and risk management.
2. Impatient Mindset
Most beginners approach the stock market with a short-term mindset, looking for quick gains rather than long-term growth. This speculative approach aligns more closely with gambling.
3. Indian Culture against Risk
Traditionally, Indian culture has favored safe and tangible investments like gold and real estate, simply emphasis on avoiding risk. The concept of investing in stock market seems negative to Indians.
4. Volatile & Risk Nature
The stock market is inherently unpredictable, with prices fluctuating based on various factors. This unpredictability can make it seem like gambling, where outcomes are uncertain and lead to significant financial losses.
5. Effect of Investment Scams
Indian stock market had faced instances of various scams and fraudulent activities, such as the Harshad Mehta scam in the early 1990s. These events have made a perception of the market as a risky and manipulative places.
See lessMonetary policy
For U.S. Monetary Policy, as a part of Federal Reserve System (FED), Federal Open Market Committee (FOMC) is the primary decision making body and plays 6 important roles/functions which are as under :- 1. Forming Monetary Policies • Determining the appropriate monetary policies to achieve theRead more
For U.S. Monetary Policy, as a part of Federal Reserve System (FED), Federal Open Market Committee (FOMC) is the primary decision making body and plays 6 important roles/functions which are as under :-
1. Forming Monetary Policies
• Determining the appropriate monetary policies to achieve the Fed’s dual objective of price stability and maximum employment.
• It also provides evaluation of current economic & financial policies and forward guidance about the likely future path of monetary policies.
2. Communicating Monetary Policies
• The FOMC issues statements after each meeting, providing insights into its policy decisions and economic outlook.
• This communication assist in managing market uncertainty and ensures transparency to the public.
3. Conducting Open market operations
• Buying & selling government securities is the primary tool used by the FOMC to influence interest rates and the money supply.
• By Purchasing securities ensures liquidity into the banking system and lowers the federal funds rate, while vice versa in selling securities.
4. Influencing federal funds rates
• Federal Funds Rate is the interest rate that banks charge to each other for overnight loans.
• By adjusting this target, the FOMC can affect interest rates throughout the economy including mortgage, loans, etc.
5. Ensuring Economic Stability
• Boost economic activity by lowering interest rates to encourage borrowing and spending.
• Raising interest rates can slow down economic growth and reduce inflation.
6. Quantitative Easing (QE) and Tightening
• During financial crises, the FOMC may engage in unconventional monetary policy measures like Quantitative Easing (QE) & Tightening.
• In QE it buys large quantities of longer-term securities to lower long-term interest rates and stimulate the economy.
• In Quantitative Tightening it sells these securities to tighten monetary conditions.
See lessMonetary policy
For U.S. Monetary Policy, as a part of Federal Reserve System (FED), Federal Open Market Committee (FOMC) is the primary decision making body and plays 6 important roles/functions which are as under :- 1. Forming Monetary Policies • Determining the appropriate monetary policies to achieve theRead more
For U.S. Monetary Policy, as a part of Federal Reserve System (FED), Federal Open Market Committee (FOMC) is the primary decision making body and plays 6 important roles/functions which are as under :-
1. Forming Monetary Policies
• Determining the appropriate monetary policies to achieve the Fed’s dual objective of price stability and maximum employment.
• It also provides evaluation of current economic & financial policies and forward guidance about the likely future path of monetary policies.
2. Communicating Monetary Policies
• The FOMC issues statements after each meeting, providing insights into its policy decisions and economic outlook.
• This communication assist in managing market uncertainty and ensures transparency to the public.
3. Conducting Open market operations
• Buying & selling government securities is the primary tool used by the FOMC to influence interest rates and the money supply.
• By Purchasing securities ensures liquidity into the banking system and lowers the federal funds rate, while vice versa in selling securities.
4. Influencing federal funds rates
• Federal Funds Rate is the interest rate that banks charge to each other for overnight loans.
• By adjusting this target, the FOMC can affect interest rates throughout the economy including mortgage, loans, etc.
5. Ensuring Economic Stability
• Boost economic activity by lowering interest rates to encourage borrowing and spending.
• Raising interest rates can slow down economic growth and reduce inflation.
6. Quantitative Easing (QE) and Tightening
• During financial crises, the FOMC may engage in unconventional monetary policy measures like Quantitative Easing (QE) & Tightening.
• In QE it buys large quantities of longer-term securities to lower long-term interest rates and stimulate the economy.
• In Quantitative Tightening it sells these securities to tighten monetary conditions.
See lessMonetary policy
For U.S. Monetary Policy, as a part of Federal Reserve System (FED), Federal Open Market Committee (FOMC) is the primary decision making body and plays 6 important roles/functions which are as under :- 1. Forming Monetary Policies • Determining the appropriate monetary policies to achieve the Fed'sRead more
For U.S. Monetary Policy, as a part of Federal Reserve System (FED), Federal Open Market Committee (FOMC) is the primary decision making body and plays 6 important roles/functions which are as under :-
1. Forming Monetary Policies
• Determining the appropriate monetary policies to achieve the Fed’s dual objective of price stability and maximum employment.
• It also provides evaluation of current economic & financial policies and forward guidance about the likely future path of monetary policies.
2. Communicating Monetary Policies
• The FOMC issues statements after each meeting, providing insights into its policy decisions and economic outlook.
• This communication assist in managing market uncertainty and ensures transparency to the public.
3. Conducting Open market operations
• Buying & selling government securities is the primary tool used by the FOMC to influence interest rates and the money supply.
• By Purchasing securities ensures liquidity into the banking system and lowers the federal funds rate, while vice versa in selling securities.
4. Influencing federal funds rates
• Federal Funds Rate is the interest rate that banks charge to each other for overnight loans.
• By adjusting this target, the FOMC can affect interest rates throughout the economy including mortgage, loans, etc.
5. Ensuring Economic Stability
• Boost economic activity by lowering interest rates to encourage borrowing and spending.
• Raising interest rates can slow down economic growth and reduce inflation.
6. Quantitative Easing (QE) and Tightening
• During financial crises, the FOMC may engage in unconventional monetary policy measures like Quantitative Easing (QE) & Tightening.
• In QE it buys large quantities of longer-term securities to lower long-term interest rates and stimulate the economy.
• In Quantitative Tightening it sells these securities to tighten monetary conditions.
See less