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Author: Abey Francis Publisher: ISBN: Category : Languages : en Pages :
Book Description
According to economic theorists, investors think and behave “rationally” when buying and selling stocks. Generally investors are presumed to use all available information to form “rational expectations” in investment decision making. In reality, individual investors do not think and behave rationally. To the contrary, driven by greed and fear, investors speculate stocks between unrealistic highs and lows. They are misled by extremes of emotion, subjective thinking and the herd mentality. Indian stock market is considered to be highly volatile, sensitive and reactive to unanticipated shocks and news. At the same time, Indian stock market is resilient and it recovers soon after shocks. The role and importance of individual investors and their trading behaviour is not properly discounted. It is believed that trading behaviour of individual investors rarely influences the stock prices. The paper intends to analyse the determinants of the individual investor behaviour of Indian stock market and factors affecting their investment decisions. An empirical study is conducted to analyse the investment behaviour and decision making style of individual investors. Analytical Hierarchy Process (AHP) is used to find the relative importance of different behavioural traits of the investors.
Author: Abey Francis Publisher: ISBN: Category : Languages : en Pages :
Book Description
According to economic theorists, investors think and behave “rationally” when buying and selling stocks. Generally investors are presumed to use all available information to form “rational expectations” in investment decision making. In reality, individual investors do not think and behave rationally. To the contrary, driven by greed and fear, investors speculate stocks between unrealistic highs and lows. They are misled by extremes of emotion, subjective thinking and the herd mentality. Indian stock market is considered to be highly volatile, sensitive and reactive to unanticipated shocks and news. At the same time, Indian stock market is resilient and it recovers soon after shocks. The role and importance of individual investors and their trading behaviour is not properly discounted. It is believed that trading behaviour of individual investors rarely influences the stock prices. The paper intends to analyse the determinants of the individual investor behaviour of Indian stock market and factors affecting their investment decisions. An empirical study is conducted to analyse the investment behaviour and decision making style of individual investors. Analytical Hierarchy Process (AHP) is used to find the relative importance of different behavioural traits of the investors.
Author: Suyam Praba Publisher: Meem Publishers ISBN: 9788830350564 Category : Languages : en Pages : 0
Book Description
Delves into the realm of financial psychology, focusing on the investment choices made by retail investors and the subsequent effects on their investment patterns. The research aims to explore the behavioral aspects that influence decision-making in the realm of investments and how these choices shape the overall investment strategies adopted by individual retail investors. It utilizes a comprehensive research framework to analyze the various psychological factors, cognitive biases, and emotional responses that drive investment decisions among retail investors. By examining these behavioral aspects, the researchers aim to uncover the underlying reasons behind specific investment patterns and their outcomes. Through a combination of surveys, interviews, and data analysis, the study seeks to provide valuable insights into the motivations, risk tolerance, and decision-making processes of retail investors. Additionally, it aims to identify common behavioral biases that might lead to suboptimal investment choices, thereby contributing to the body of knowledge in both finance and psychology. Ultimately, the research endeavors to offer recommendations and strategies to enhance the investment decision-making process of retail investors. By understanding the impact of psychological factors on investment behavior, the study aims to empower individual investors to make more informed and rational choices, ultimately improving their financial outcomes and overall investment performance. This study is a valuable contribution to the field of behavioral finance, bridging the gap between psychological insights and investment practices in the context of retail investors.
Author: Arup Kumar Sarkar Publisher: Emerald Group Publishing ISBN: 1787562816 Category : Business & Economics Languages : en Pages : 190
Book Description
Investment Behaviour explores the relationship between competing demographic factors, personal awareness and perceived attitudes to risk in shaping the behaviour of individual investors in the stock market. By so doing, the book facilitates the formulation of more individual-centered financial policy.
Author: H. Kent Baker Publisher: John Wiley & Sons ISBN: 1118492986 Category : Business & Economics Languages : en Pages : 645
Book Description
WINNER, Business: Personal Finance/Investing, 2015 USA Best Book Awards FINALIST, Business: Reference, 2015 USA Best Book Awards Investor Behavior provides readers with a comprehensive understanding and the latest research in the area of behavioral finance and investor decision making. Blending contributions from noted academics and experienced practitioners, this 30-chapter book will provide investment professionals with insights on how to understand and manage client behavior; a framework for interpreting financial market activity; and an in-depth understanding of this important new field of investment research. The book should also be of interest to academics, investors, and students. The book will cover the major principles of investor psychology, including heuristics, bounded rationality, regret theory, mental accounting, framing, prospect theory, and loss aversion. Specific sections of the book will delve into the role of personality traits, financial therapy, retirement planning, financial coaching, and emotions in investment decisions. Other topics covered include risk perception and tolerance, asset allocation decisions under inertia and inattention bias; evidenced based financial planning, motivation and satisfaction, behavioral investment management, and neurofinance. Contributions will delve into the behavioral underpinnings of various trading and investment topics including trader psychology, stock momentum, earnings surprises, and anomalies. The final chapters of the book examine new research on socially responsible investing, mutual funds, and real estate investing from a behavioral perspective. Empirical evidence and current literature about each type of investment issue are featured. Cited research studies are presented in a straightforward manner focusing on the comprehension of study findings, rather than on the details of mathematical frameworks.
Author: Jhansi Rani Boda Publisher: ISBN: Category : Languages : en Pages : 9
Book Description
Objective - Investment is the commitment of funds which have been saved from the current consumption with an expectation of favorable future returns. Investment behavior is concerned with choices made about the purchase of a significant number of securities for an individual or institutional account. Individual investment behavior is relatively a new area of research in behavioral finance. This study aims to identify the various behavioral patterns of retail investors and their investment decision making in the newly formed Telangana state of India.Methodology/Technique - Data were collected from a sample of 200 retail investors via a structured questionnaire. Factor analysis was then conducted to critically identify the behavioral patterns of the retail investors.Findings - The findings of this study indicate that the two behavioral factors of Heuristics and Prospect have significant impact on the investment decision making attitudes of the retail investors.Novelty - As a newly formed state in India, the Telangana state provides potential investment opportunities for retail as well as institutional investors. It is thus, highly imperative to explore how retail investors make investment decisions especially in the newly formed Telangana State in India.
Author: Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
In 'Unlocking the Equity Market: Understanding Retail Investor Behavior, Biases, and Their Market-Wide Impacts, ' readers embark on a fascinating exploration of the intricate world of retail investing. This insightful work delves into the psychology and behavior of retail investors, unraveling the biases and decisionmaking processes that shape the equity market. The narrative unfolds as a deep dive into the minds of retail investors, dissecting their behavior and exploring the psychological biases that influence their market interactions. Through comprehensive research and real-world examples, the book illuminates the complexities of investor sentiment, shedding light on how emotions, cognitive biases, and social factors impact trading decisions. Readers are guided through the various cognitive biases that often lead to irrational market behavior, from overconfidence and loss aversion to herding and anchoring. The book emphasizes the profound impact of these biases not only on individual investors but also on market-wide trends, showcasing how collective retail investor behavior can influence stock prices and market volatility. 'Unlocking the Equity Market' serves as a valuable resource for both novice and experienced investors, offering insights into the underlying factors that drive market fluctuations. It equips readers with a deep understanding of retail investor behavior, enabling them to navigate the equity market with a more informed and analytical perspective. As readers delve into the complexities of investor biases, they gain valuable insights that can help them make more rational and strategic investment decisions, unlocking the potential for success in the ever-changing world of equity trading.
Author: Daniel Crosby Publisher: Harriman House Limited ISBN: 0857196871 Category : Business & Economics Languages : en Pages : 280
Book Description
From the New York Times bestselling author of the book named the best investment book of 2017 comes The Behavioral Investor, an applied look at how psychology ought to inform the art and science of investment management. In The Behavioral Investor, psychologist and asset manager Dr. Daniel Crosby examines the sociological, neurological and psychological factors that influence our investment decisions and sets forth practical solutions for improving both returns and behavior. Readers will be treated to the most comprehensive examination of investor behavior to date and will leave with concrete solutions for refining decision-making processes, increasing self-awareness and constraining the fatal flaws to which most investors are prone. The Behavioral Investor takes a sweeping tour of human nature before arriving at the specifics of portfolio construction, rooted in the belief that it is only as we come to a deep understanding of “why” that we are left with any clue as to “how” we ought to invest. The book is comprised of three parts, which are as follows: - Part One – An explication of the sociological, neurological and physiological impediments to sound investment decision-making. Readers will leave with an improved understanding of how externalities impact choices in nearly imperceptible ways and begin to understand the impact of these pressures on investment selection. - Part Two – Coverage of the four primary psychological tendencies that impact investment behavior. Although human behavior is undoubtedly complex, in an investment context our choices are largely driven by one of the four factors discussed herein. Readers will emerge with an improved understanding of their own behavior, increased humility and a lens through which to vet decisions of all types. - Part Three – Illuminates the “so what” of Parts One and Two and provides a framework for managing wealth in a manner consistent with the realities of our contextual and behavioral shortcomings. Readers will leave with a deeper understanding of the psychological underpinnings of popular investment approaches such as value and momentum and appreciate why all types of successful investing have psychology at their core. Wealth, truly considered, has at least as much to do with psychological as financial wellbeing. The Behavioral Investoraims to enrich readers in the most holistic sense of the word, leaving them with tools for compounding both wealth and knowledge.
Author: H. Kent Baker Publisher: John Wiley & Sons ISBN: 0470499117 Category : Business & Economics Languages : en Pages : 773
Book Description
A definitive guide to the growing field of behavioral finance This reliable resource provides a comprehensive view of behavioral finance and its psychological foundations, as well as its applications to finance. Comprising contributed chapters written by distinguished authors from some of the most influential firms and universities in the world, Behavioral Finance provides a synthesis of the most essential elements of this discipline, including psychological concepts and behavioral biases, the behavioral aspects of asset pricing, asset allocation, and market prices, as well as investor behavior, corporate managerial behavior, and social influences. Uses a structured approach to put behavioral finance in perspective Relies on recent research findings to provide guidance through the maze of theories and concepts Discusses the impact of sub-optimal financial decisions on the efficiency of capital markets, personal wealth, and the performance of corporations Behavioral finance has quickly become part of mainstream finance. If you need to gain a better understanding of this topic, look no further than this book.
Author: Abey Francis
Author: Abey Francis
Author: Suyam Praba
Author: Arup Kumar Sarkar
Author: H. Kent Baker
Author: Jakob Kolbe
Author: Jhansi Rani Boda
Author: 
Author: Daniel Crosby
Author: Kelly A. Rushing
Author: H. Kent Baker