Professional Documents
Culture Documents
BIBLOGRAPHY 14
To study the various factors that influence the investors decision making process.
To examine the relationship between age, income and the investment portfolio of the
investors.
To know the latest and future development in the stock exchange trading system, clearly
defining each term of the stock exchange procedure.
To study the effect of the changing trends in the capital market on the investor, the broker
and on the country largely.
There is growing competition between brokerage firms in post reform India. For investor
by investors due to lack of awareness. The major findings of this study are that people are
(ANGEL BROKING) positive and strong points, on the basis of which we come to know
LITERATURE REVIEW
Meleanie Cao and Jason Wei (2004) investigated whether stock market returns are
related to body temperature. Their study suggested that lower temperature leads to
aggression where as higher temperature leads to apathy and aggression. Aggression
would lead to more risk taking activities while apathy could impede risk taking. Apathy
dominates aggression when temperature is high. David Hirshleifer and Itzhak Ben-
David (2011) examine how investor preferences and beliefs affect trading in relation to
past gains and losses. Investors are much more likely to sell big losers than small ones.
Their findings provide no clear indication that realization preference helps explain
investor trading behavior.
SC Myers and NS Majluf (1984) consider that a firm must issue common stock in order
to raise money to undertake valuable investment opportunity. Management is assumed to
know more about the firm's value than potential investors and Investors interpret the
firm's actions rationally. An equilibrium model of the issue-invest decision is developed
under these assumptions and the model shows that firms may refuse to issue stock, and
therefore may pass up valuable investment opportunities. Richard W. Sias and David A.
Whidbee (2008) investigate whether insider trading is related to net demand by
institutional versus individual investors. Their tests reveal a strong inverse relation
between insider trading and institutional. First, institutional investors are more likely to
provide the liquidity necessary for insiders to trade. Second, insiders are more likely to
buy low valuation and low lag return stocks while institutions are attracted to the opposite
security characteristics. Last, the results are consistent with the hypothesis that insiders
are more likely to view their securities as overvalued following a period when institutions
were net buyers and undervalued following a period when institutions were net sellers.
RON KANIEL, GIDEON SAAR, and SHERIDAN TITMAN (2008) investigates the
dynamic relation between net individual investor trading and short-horizon returns for a
large cross-section of NYSE stocks. The evidence indicates that individuals tend to buy
stocks following declines in the previous month and sell following price increases.
E Boehmer, EK Kelley (2009) used a broad panel of NYSE-listed stocks between 1983
and 2004, and studied the relation between institutional shareholdings and the relative
informational efficiency of prices, measured as deviations from a random walk. Stocks
with greater institutional ownership are priced more efficiently, and showed that variation
in liquidity does not drive this result.
Mark L Mitchell and J Harold Mulhrin (1994) studied the relation between news
announcements reported by Dow Jones & Co and found out that the relation between
news and market activity is not strong. K.Shanti Swarup (2003) in her study indicated
that investors give more importance to their analysis than brokers advice while investing
in primary markets. Ning Zhu (2002) investigates individual investors' bias
towards nearby companies. Using data from a large U.S. discount brokerage and found
that individual investors tend to invest in companies closer to them relative to the market
portfolio.
Dimitrios I Maditinos, Zejiko Sevic and Nikolas G Theorine (2007) used a questionnaire to
examine the various