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The link between stock prices and investor trading, especially retail investor trading, is at once both obvious and perplexing. Which is the cause, which the effect and who or what do we blame when stock market prices go wrong? Most theories of stock price anomalies rely on investor error, and many assume that retail investors are the source of the error. In this monograph, we explore this assumption. We consider the effect of investor category demand imbalance on prices across the entire stock market. We then focus on demand imbalance as a predictor of stock price bubble crashes. Finally, we…mehr

Produktbeschreibung
The link between stock prices and investor trading,
especially retail investor trading, is at once both
obvious and perplexing. Which is the cause, which
the effect and who or what do we blame when stock
market prices go wrong? Most theories of stock price
anomalies rely on investor error, and many assume
that retail investors are the source of the error.
In this monograph, we explore this assumption. We
consider the effect of investor category demand
imbalance on prices across the entire stock market.
We then focus on demand imbalance as a predictor of
stock price bubble crashes. Finally, we consider
the cause and effect of investor category demand
imbalances on stock prices as they display the
dramatic price increases and falls that characterize
a bubble. This monograph is required reading for
anyone tempted to rely on individual investor
decision making for an explanation of stock market
prices.
Autorenporträt
Julia L.K. Henker, PhD (Behavioral Finance), MBA, CFA: Dr.
Henker lectures at the Australian School of Business,
University of New South Wales, Sydney, Australia.