Stock Loan Lotteries and Individual Investor Performance

2018 ◽  
Author(s):  
Jordan Moore
Keyword(s):  
Individual Investor ◽  
Stock Loan

Stock loan lotteries and individual investor welfare

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jordan Moore
Keyword(s):  
Design Methodology ◽  
Expected Returns ◽  
Individual Investors ◽  
Household Savings ◽  
Individual Investor ◽  
Risky Assets ◽  
Content Type ◽  
Financial Outcomes ◽  
Financial Wealth ◽  
Stock Loan

PurposeThis paper proposes and models stock loan lotteries, a financial innovation that improves individual investor welfare. Stock loan lotteries are prize-linked payoffs using securities lending fees.Design/methodology/approachThis paper solves an existing theoretical model for an investor's utility-maximizing choices with and without stock loan lotteries and compares outcomes.FindingsStock loan lotteries motivate prospect theory investors to buy and hold risky assets with high expected returns. Stock loan lotteries improve welfare more for poor investors and improve welfare more in a model with market frictions such as trading costs.Social implicationsStock loan lotteries increase household savings, leading to greater financial wealth and security in retirement.Originality/valueThis paper proposes a new financial product that improves financial outcomes for individual investors.

Marketing to the Individual Investor

1988 ◽  
Vol 1988 (5) ◽  
pp. 53-58
Author(s):  
Richard B. Ross
Keyword(s):  
Individual Investor ◽  
The Individual

The Individual Investor After October 19, 1987

1988 ◽  
Vol 1988 (5) ◽  
pp. 29-31 ◽  
Author(s):  
Laurence A. Manchester
Keyword(s):  
Individual Investor ◽  
The Individual

An Empirical Study of Investor Attitudinal Factors Influencing Herd Behavior: Evidence from Pakistan Stock Exchange

2019 ◽  
Vol 12 (1) ◽  
pp. 1-11
Author(s):  
Faid Gul ◽  
Karamat Khan
Keyword(s):  
Linear Regression ◽  
Multiple Linear Regression ◽  
Psychological Factors ◽  
Stock Exchange ◽  
Linear Regression Analysis ◽  
Primary Data ◽  
Herd Behavior ◽  
Individual Investor ◽  
Decision Accuracy ◽  
Attitudinal Factors

Behavioral Finance is an evolving field that studies how psychological factors affect decision making under uncertainty. Herding behavior is one of the psychological factors that instigate investor to mimic the actions of other investors in the market rather than using his personal assessments. This study seeks to find the influence of certain attitudinal factors namely, decision conformity, hasty decision, mood, decision accuracy, and overconfidence, on the individual investor tendency to embrace herd behavior. Primary data for the study are collected using structured questionnaires from a sample of 194 investors who are trading at Islamabad and Lahore branches of Pakistan Stock Exchange. Multiple linear regression analysis is used to test the hypotheses of this study. Findings of this study provide evidence that attitudinal factors have a significant influence on investor’s tendency to take on herd behavior. It is concluded from the results of multiple linear regression that decision conformity, mood, and decision accuracy have a significant impact on individual investor tendency to adopt herd behavior. However, investor hasty decision and overconfidence is insignificant predictors of herd behavior. Keywords: Decision conformity, Hasty decision, Mood, Decision accuracy, Overconfidence, Herd behavior

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