An organized financial market is the primary pump for using money collected from savings in successful investments. The financial market can be considered exactly like the heart in the body, distributing food throughout the body. It also distributes money to successful projects and investments. In addition, the financial market is considered the basic tool that expresses the health of the economy, because the financial market can only operate under conditions of transparency, institutionalism, the rule of law, and political and social stability. Therefore, the stock market is a real financial market and necessary for the growth and development of the economy.
The stock market is truly a financial market when it is informationally efficient (at least in a weak form). If not, then this is a speculative instrument - this is where the crisis begins... through the mediation of banks.
Yes, stock market is the very important part of financial market and i don't think that stock market is a gambling although it has systematic risk or market risk and unsystematic risk of losing money. Unsystematic risk can be minimized by well diversified of portfolio but some market risk will always be there in every stocks. If you are properly analysing the fundamental parameters of a stocks and capital structure of a comapany then most of the time you will be beneficial but not everytime.
Stock market is a genuine financial market, but it is risky to invest in stock market because of its volatility.
It is both. While there is financial logic (*see attachment) in the stock market, it is from a mathematical viewpoint a financial gambling, i.e. game theory applies.
The stock market is a device for transferring money from the impatient to the patient. – Warren Buffett
What does "genuinely financial" mean? And why would that preclude gambles?
No, stock market is not a gambling ground, as it provides a platform for long term funds to be raised which are necessary for stimulating investment and growth. It is not a gambling because it is well regulated. There are rules, norms, conventions and guidelines on how to transact in the market which all investors must complied. The only thing about the market is that investors must understand the market, the trend of events, engaged in both technical and fundamental analysis before buying or selling in the market.