TY -
GEN
AU - Barber, Brad M.
AU - Odean, Terrance
TI -
Chapter 22. The Behavior of Individual Investors
SN - 9780444594068
KW - Individual investors
KW - Trading
KW - Overconfidence
KW - Disposition effect
KW - Attention
KW - diversification
PY - 2013
N2 - We provide an overview of research on the stock trading behavior of individual investors. This research documents that individual investors (1) underperform standard benchmarks (e.g. a low-cost index fund), (2) sell winning investments while holding losing investments (the “disposition effect”), (3) are heavily influenced by limited attention and past return performance in their purchase decisions, (4) engage in naïve reinforcement learning by repeating past behaviors that coincided with pleasure while avoiding past behaviors that generated pain, and (5) tend to hold undiversified stock portfolios. These behaviors deleteriously affect the financial well being of individual investors.
UR - http://slubdd.de/katalog?TN_libero_mab2
ER -