Why is buying stocks online in the U.S legal and online gambling is illegal?
Question by userx: Why is buying stocks online in the U.S legal and online gambling is illegal?
Its basically the same thing. There is no guide to new investors but these sites are promting their 5 dollar trade.
Answer by Chris
This is a poor premise. There are plenty of guides to new investors and the industry is regulated by the SEC. Investing is able to be studied and at least somewhat accurately predicted. Gambling is simply chance or more correctly no chance because the house always wins. You cannot do due dilligence on gambling while you can on public companies. My investments are nothing like gambling. Speculation is gambling but the rule of don’t risk what you can’t lose applies equally to both. Since they aren’t the same thing I think it makes sense.
It all comes down to taxes. The U.S. government will pretty much allow anything as long as it can be taxed. Even legal gambling in Nevada, NJ, Mississippi, and Louisiana are watched careful and taxed accordingly.
The reason online gambling gets the government all hot is because they cannot tax these companies. A lot of them are based overseas and do not have to adhear to the U.S. laws on taxes.
The stock market is highly regulated and essential to the economy. You don’t bet on what company is going to make money, you invest in them. The money you spend on stocks is money that company uses to make more money so you get a return on your investment (hopefully).
Gambling does nothing more than line the pockets of casinos and bookies.
That’s a great question. I do not understand Federal as well as many local authorities who are agains gambling. Wall street is gambling. I think they should legalise it, taxing it will definitely cover a big portion of the current US national debt.
http://letsgobble.com/
There are a lot of anomalies within government policy. The policy sort of is governed by pressure groups and money with money being the prime mover. I sort of suspect that the Wall Street firms flow a great deal into Washington to gather support for their well being. As for on line gambling, the firms are outside of the U S and apparently have not provided the funding for congressmen that was expected.