scholarly journals Awareness Level of Retail Investors on Stock Market in Chennai City

2020 ◽  
Vol 8 (4S5) ◽  
pp. 14-16
Keyword(s):  
Stock Market ◽  
Investment Decisions ◽  
Mean Value ◽  
The Past ◽  
Retail Investors ◽  
Retail Investor ◽  
Stock Market Investors ◽  
Chennai City ◽  
Investment Patterns ◽  
Structured Questionnaire

The globalization of monetary markets has been increasing the dimensions of retail investor community over the past three decades by providing a good sort of market and investment options. Hence, it makes their investment decisions process more complex. The present study aims to study the awareness of investors on stock market. The data were collected from 100 retail stock market investors of Chennai using structured questionnaire. The analysis is made using percentage and mean value. The study proves that post graduate, professional, high income level investors are aware of investment patterns through friends, neighbors and they yield a good income. The study also reveals that the retail investors are even aware of the fundamental and technical analysis of investment, which helps them for a better and wise investment.

A qualitative inquiry into the investment decision behaviour of the Malaysian stock market investors

2016 ◽  
Vol 8 (3) ◽  
pp. 246-267 ◽  
Author(s):  
Haruna Babatunde Jaiyeoba ◽  
Razali Haron
Keyword(s):  
Stock Market ◽  
Information Seeking ◽  
Investment Decision ◽  
Investment Decisions ◽  
Qualitative Inquiry ◽  
Structured Interviews ◽  
Content Type ◽  
Investment Decision Making ◽  
Retail Investors ◽  
Stock Market Investors

Purpose The main purpose of this study was to examine the investment decision behaviour of retail investors in Malaysia. Design/methodology/approach The study adopted semi-structured interviews to solicit an understanding of six retail investors on investment decision behaviour in Malaysia. Content analysis technique was used to analyse the data and verbatim texts were applied in discussing the emergent themes. Findings The findings indicate that retail investors in Malaysia are patriotic in nature, and their investment decisions are based on feeling of comfort or convention rather than quantitative analysis. They rely so much on their findings rather than third party’s views for making investment decisions. They were influenced by the psychological biases because they herd on the information. Challenges are solved through experience, and they believe that proper understanding of the financial and economic settings of the country can enhance better investment decision-making. Research limitations/implications A more detailed investigation on the investors’ behaviour with more samples may expand our understanding of this issue. Future studies need to examine the investment decision behaviour with more samples. Practical implications First, it will prepare hit and run investors to be more ready to remain in the market and improve their skills on how to make sound investment decisions. Second, it helps the investors to know that knowledge of traditional finance theory is not sufficient to excel in stock market, and, hence, they need to know more about behavioural finance. Third, investors are exposed to various reasons as to why investment decisions deviate from expected and different means of solving the challenges faced in making investment decision within the Malaysian context. Fourth, investors are reminded that understanding the financial settings before investing is essential. Finally, policy makers in stock market are able to understand the retail investors’ behaviour. Originality/value This study examines the experience and prospect to remain as stock market investors, their priorities in selecting the right company for investment purposes, the kind of information seeking from third parties, the challenges faced by them and other important considerations in investment decisions. These have never been examined together in this way in investigation of retail investors’ investment behaviour.

scholarly journals Qualitative Analysis on Investment Decisions of Nepalese Stock Market Investors

2021 ◽  
Vol 2 (5) ◽  
pp. 349-365
Author(s):  
Rashesh Vaidya
Keyword(s):  
Stock Market ◽  
Insider Trading ◽  
Investment Decision ◽  
Investment Decisions ◽  
Listed Companies ◽  
Structured Interview ◽  
Secondary Market ◽  
Fundamental Aspect ◽  
Macroeconomic Factors ◽  
Stock Market Investors

The paper attempts to examine the experience of the Nepalese investors at the secondary market. The paper explored the investment decisions process of the Nepalese investors. The paper has adopted the grounded theory to generate the theory from the data collected from the semi-structured interview from the stock market investors having an academic background in management. The findings revealed that the investors are eager to invest in the stock market and go for a better experience from their trading at the NEPSE floor. The study exposed a mixed opinion in context to the understanding of the macroeconomic aspects and their influence on investment decisions. The investors forwarded that there is no relation between their investment decision-making process and the macroeconomic factors, while some of the investors stated that they see a connection of the economy with the stock market directly or indirectly. The study came out that the major concern of the Nepalese investors is a fundamental aspect of the listed companies while selecting for an investment. At the same time, investors stated that they go for technical analysis or follow the market trend for the short-term trading at NEPSE floor. The investors are seen at one point that the unstable political situation and insider trading have been major challenges, in context to the Nepalese stock market. Finally, the excessive flow of information related to the listed companies either with some validity or not, makes an investor’s investment decisions go wrong. 

scholarly journals Securities Market Conditions: the Phenomenon of the Influence of Private Investors by Means of Social Networks

2021 ◽  
Vol 12 (3) ◽  
Author(s):  
Natalya Zvyagintseva ◽  
Ksenia Ovchinnikova
Keyword(s):  
Social Networks ◽  
Stock Market ◽  
Scientific Literature ◽  
Investment Decisions ◽  
Securities Market ◽  
The Internet ◽  
Market Manipulation ◽  
Retail Investors ◽  
Modern Economic ◽  
Private Investors

The key trend in the development of the securities market in 2020–2021 was a record inflow of retail investors. At the same time, the increasing number of private investors on the stock market is accompanied by their active use of social networks. The development of social networks enables private investors to establish communication with each other, pool capital and develop common strategies, which ultimately increase the influence of individuals on the stock market dynamics. A review of modern economic scientific literature has shown insufficient coverage of the issue of social networks impact on the securities market. In this connection, the authors made an attempt to investigate such precedents to systematize them. The article presents the dynamics of the number of private investors and their share in trading turnover, gives reasons for the expansion of retail investors presence on the securities market, considers statistics demonstrating the breadth of the Internet and social networks penetration into various spheres of citizens' life. Cases of market manipulation through the actions of private investors in social networks were analyzed and summarized, as well as government regulators’ reaction to such actions was revealed. A number of risks associated with social networks influence on investment decisions by private investors are identified and recommendations for their protection and leveling the negative background of social networks are proposed.

Introduction to Biologically Inspired Algorithms

2021 ◽  
pp. 11-31
Keyword(s):  
Artificial Intelligence ◽  
Stock Market ◽  
Chaos Theory ◽  
Thought Process ◽  
Biologically Inspired ◽  
Computing Systems ◽  
The Past ◽  
Stock Investment ◽  
Biologically Inspired Algorithms ◽  
Stock Market Investors

In order to find more sophisticated ways to remain in competition in the stock market, investors and analysts are finding procedures based on nature-inspired artificial intelligence-based algorithms. It is seen that interest of researchers has grown in these technologies in the past years. These newer techniques have changed the investment arena of the stock market. A lot of thought process, hard work, creativeness, and knowledge about these algorithms are required to implement them in the stock investment area. In the past, few people have had the privilege to implement and obtain better results by using these algorithms. But with the access to affordable computing systems and experts with the knowledge of these computing systems, we can take advantage of making profit from the market. This chapter explains the detail working of these AI techniques such as chaos theory, neural networks, fuzzy logic, and genetic algorithms in detail.

scholarly journals Retail Investors’ Responsibilities in Stock Market Imperfection in Bangladesh: An Empirical Study

2015 ◽  
Vol 7 (2) ◽  
pp. 78
Author(s):  
Protap Kumar Ghosh ◽  
Sutap Kumar Ghosh
Keyword(s):  
Stock Market ◽  
Price Volatility ◽  
Relevant Information ◽  
Stock Trading ◽  
Market Imperfection ◽  
Market Index ◽  
Retail Investors ◽  
Retail Investor ◽  
Regulatory Bodies ◽  
Price Instability

<p>Because of frequent price instability, stock market in Bangladesh represents itself an imperfect one over times. The retail investors claim that these frequent price fluctuation in the market is due to price manipulation, presence of syndicate and improper control by regulatory bodies and so on. But this study has found that a great portion of retail investors are very micro investors and reluctant in using relevant information in stock trading and furthermore ridiculously influenced by others investors and brokerage house personnel. Most of them consider only trend of past prices and market index. Majority of our respondents never considered net asset per share although it might give an idea about market value per share. So, the whole responsibilities of this price volatility and market imperfection can’t be shifted to third parties solely; retail investor themselves are responsible to some extent due to their irrational behavior and high expectation from stock trading. Stock market perfection in Bangladesh is quite impossible without enhancing awareness among retail investors and ensuring their rational behavior in stock trading.</p>

scholarly journals Personality Traits and Susceptibility to Behavioral Biases among a Sample of Polish Stock Market Investors

2015 ◽  
Vol 47 (1) ◽  
pp. 71-81 ◽  
Author(s):  
Marcin Rzeszutek
Keyword(s):  
Stock Market ◽  
Personality Traits ◽  
Stock Exchange ◽  
Mental Accounting ◽  
Lower Probability ◽  
Behavioral Biases ◽  
Retail Investors ◽  
Warsaw Stock Exchange ◽  
Stock Market Investors ◽  
The Relationship

Abstract The aim of this paper is to investigate whether susceptibility to selected behavioral biases (overconfidence, mental accounting and sunk-cost fallacy) is correlated with the Eysenck’s [1978] personality traits (impulsivity, venturesomeness, and empathy). This study was conducted on a sample of 90 retail investors frequently investing on the Warsaw Stock Exchange. Participants filled out a survey made up of two parts: 1) three situational exercises, which assessed susceptibility to behavioral biases and 2) an Impulsiveness Questionnaire, which measures impulsivity, venturesomeness, and empathy. The results demonstrated the relationship between venturesomeness and susceptibility to all behavioral biases explored in this study. We find that higher level of venturesomeness was linked with a lower probability of all behavioral biases included in this study.

scholarly journals Perception of the Effectiveness of Stock Market Recommendations in Relation to Their Real Marketability

2019 ◽  
Vol 1 (340) ◽  
pp. 149-161
Author(s):  
Jakub Michał Keller
Keyword(s):  
Stock Market ◽  
Investment Decisions ◽  
Individual Investors ◽  
Logit Models ◽  
Stock Recommendations ◽  
Average Return ◽  
Individual Perceptions ◽  
Subjective Utility ◽  
Stock Market Investors ◽  
Investment Models

The purpose of this paper is to evaluate the effectiveness of stock market recommendations as a factor supporting investment decisions, both in objective and subjective terms. The applicative objectivity of using recommendations is visualized by indicating their real impact on achieving an above‑average return. Subjective utility refers to the perception of recommendations directly by their recipients, including individual investors. For this purpose, a survey was conducted on a group of 564 respondents whose structure is representative of stock market investors in Poland and the results of the survey were verified by conducting statistical analyses (logit models) on the example of selected brokerage houses indicated by investors as the most and least effective in the prediction. The analyses conducted show an ambiguous perception of stock market recommendations by investors. According to investors, the usefulness of stock recommendations issued by individual brokerage houses varies, resulting in different possibilities of generating income using these reports. The responses of respondents to the objective results of investment models using information from stock market recommendations also indicate that individual perceptions of investors’ recommendations do not necessarily translate into their actual usefulness.

scholarly journals The impact of transaction costs in portfolio optimization

2019 ◽  
Vol 24 (48) ◽  
pp. 288-311
Author(s):  
Luc Chavalle ◽  
Luis Chavez-Bedoya
Keyword(s):  
Stock Market ◽  
Transaction Costs ◽  
Portfolio Optimization ◽  
Content Type ◽  
Holding Period ◽  
Retail Investors ◽  
Retail Investor ◽  
The Usa ◽  
The Cost ◽  
The Impact

Purpose This paper aims to analyze the impact of transaction costs in portfolio optimization in Peru. The study aims to compare the transaction costs structure applied in Peru with respect to the ones applied in the USA, and over a few dimensions. Design/methodology/approach The paper opted for an empirical study analyzing the cost of rebalancing portfolios over a set period and dimensions. Stocks have been carefully selected using Bloomberg terminals, and portfolio designed then rebalanced using VBA programming. Over a few dimensions as type and number of stocks, holding period and trading strategy, the behavior of these different transaction costs has been compared. The analysis has been done for four different portfolios. Findings The paper provides empirical insights about how a retail investor actively trading in Peru can pay up to 14 times more in transaction costs than trading the same portfolio in the USA. These comparatively high transaction costs prevent retail investors to trade in the Peruvian stock market while fueling illiquidity to this market. Research limitations/implications The paper deals with a limited amount of Peruvian stocks. Researchers are encouraged to test the proposition further, including other dimensions. Practical implications The paper includes implications for any retail investor that wants to invest in Peruvian stocks, giving an insight about how expensive it is to actively rebalance a portfolio in Peru. Originality/value This paper fulfils an identified need to study how much it costs to actively invest on the stock market in Peru.

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