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Understanding the difference between investment, speculation, and gambling is crucial for financial decision-making. Investment involves deploying capital into assets like stocks, bonds, or real estate with the expectation of generating income or appreciation over time, emphasizing research, and risk management. Speculation entails taking calculated risks to profit from short-term market fluctuations or price movements without full knowledge of underlying fundamentals. Gambling, on the other hand, refers to risking money or valuables on uncertain outcomes dependent largely on chance, often associated with casino games or lotteries, where odds favor the house.

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