Research on Stock Market

In: Business and Management

Submitted By smaks
Words 362
Pages 2
BEHAVIOURAL FINANCE
Kindly respond to the below questions which are prepared to assist my term paper on behavioural finance. Mail your responses by 4 pm 27/10/2013.
Please be fair while responding and provide the actual facts.
1. Name:Thippeswamy K S
2. Age:23
3. Gender:M
4. Have u traded on stock market: A. yes in live market B. yes in simulation C. no Your option:A
5. What is your general perception towards stock market? Your opinion:Not for a gambler. Highly volatile
6. Which one do you choose? A) Accepting a sure loss of $5,000, or B) taking a chance where there is a 50% chance you will lose $10,000 and a 50% chance that you will lose nothing.
A) or B)? B
Your opinion: better to take a chance as the loss may be only 2 times or no loss at all.
7. On what basis would you judge a share performance? A. Experts opinion B. Your own analysis of the market C. Based on mass behavior
Your opinion: B and C
8. If there is a sudden hike in the price of your share, what would you do? A. Sell to maximize profits B. Retain for long term gains C. Wait for the price to increase more
Your opinion: A. it is better to exit and buy later as the sudden rises last only few days than to repent later

9. Do you depend on other’s opinion for your investment? A. yes B. no C. sometimes
C
10. On a scale of 10 what would you rate yourself when it comes to trusting your own decisions?
Your opinion: 5. I panic a lot
11. In your class where would you rank yourself?
Your opinion: don’t know
12. I am concerned about others’ financial well-being. A. Strongly Disagree B. Moderately Disagree C. Neither Agree Or Disagree D. Moderately Agree E.…...

Similar Documents

Stock Market

...Review of Development Economics, 9(2), 166–176, 2005 Endogenous Growth Models and Stock Market Development: Evidence from Four Countries Guglielmo Maria Caporale, Peter Howells, and Alaa M. Soliman* Abstract This paper re-examines the relationship between stock market development and economic growth. It provides a theoretical basis for establishing the channel through which stock markets affect economic growth in the long run. It examines the hypothesis of endogenous growth models that financial development causes higher growth through its influence on the level of investment and its productivity. The empirical part of this study exploits techniques recently developed to test for causality in VARs. The evidence obtained from a sample of four countries suggests that investment productivity is the channel through which stock market development enhances the growth rate in the long run. 1. Introduction Several theoretical and empirical papers such as Levine (1991), Levine and Zervos (1995), Demirguc-Kunt (1994), Demirguc-Kunt and Levine (1995), Rousseau and Wachtel (2000) and Beck and Levine (2003), have suggested that stock market development affects economic growth in developing countries. The common problem with these studies, however, is that there is no discussion of the channels through which stock markets can stimulate economic growth. In traditional growth theory, the growth rate is a positive function of exogenous technical progress. However, financial......

Words: 5672 - Pages: 23

Stock Market

...project documents and describes the buying and selling of stocks that we purchased using $ 100,000 USD (Monopoly money) given to us by our instructor. Our assignment was to invest the stock in any way seen best fit to gain the most profit. We were to track our stocks three times a week and document the results using Microsoft Excel. The requirements for the assignment were to include two stock trades and to try to make our portfolio diverse using different sectors. The purpose of this project is to understand how the stock market works, and give us a better understanding of how the stock market operates. As a beginning investor, I tried to keep my initial stocks as an even investment for the most part. I invested my money into stocks that I felt would be successful and I knew that I would spend my own money on to help the stock increase. The attached Excel spreadsheets will describe in detail the beginning investment, the first and second adjustment, and my final outcome including my total gains/losses. To complete the project, my stocks were sold for me to cash out and my results were documented. Introduction At the beginning of this project, I felt very confident in being able to make a profit by the end of the class by just picking the most popular- trendy companies that were available in the market for a decent price. Without even looking at the history of the company or doing research on the price history at the leaset. My strategy was......

Words: 2032 - Pages: 9

Stock Market

...Assignment on: Stock Market Problems and Solution in the Context of Bangladesh Capital Market What are the reasons of inefficient stock market in Bangladesh? What can be done to develop the stock market?       Stock market is a financial market, where stocks and bonds are used to buy and sell. Shareholders i.e. investors exchange their shares in the stock market. The current market price of a share is determined by the demand and supply of that particular share. Before we go through the reasons of inefficient stock market I would like to clarify about inefficient stock market. Inefficient Stock Market           It refers that type of stock market which is not stable and healthy for investors. In inefficient stock market price level fluctuates so much. Market can not absorb large number of securities without changing price level. The main cause of share market fall is this, the inefficient stock market. Last year we have experienced a huge crash in Dhaka & Chittagong Stock Exchange.       If we would recall, Dhaka Stock Exchange Gen. Index (DGEN) soared to its highest levels from October to December last year, with the peak on Dec. 5, 2010 at 8,918 points. DSE’s index on Jan. 3, 2010 was at 4568.40 and went up at a staggering 4,350 points or 95.23% increase! But 2weeks later, Jan. 10, 2011, trading on the Dhaka Stock Exchange was halted after it fell by 660points, or 9.25%, in less than an hour, the biggest one-day fall in its 55-year history. Police and angry......

Words: 327 - Pages: 2

Stock Market

...... 15 Limitations of this Analysis...................................................................................... 16 Issues for subsequent research .................................................................................. 16 Conclusions............................................................................................................... 16 About the author ....................................................................................................... 17 Appendix A – Hypothetical examples of value creation. ......................................... 18 Berkshire Hathaway and GEICO Insurance © 2001 Tim Glowa September 12, 2001 -3- Executive Summary In 1995, Berkshire Hathaway purchased GEICO insurance for a 25% premium over its traded share price. Many investors, including major brokerage houses and financial reporters, questioned the wisdom of such an investment, especially since Berkshire Hathaway with its near mythical chairman, Warren Buffett, was involved. After reviewing the history of GEICO, Berkshire Hathaway, and the investing philosophy of Warren Buffett, this paper reviews and evaluates the purchase of GEICO. This paper examines two primary tools available for analyzing possible investments. The first is the dividend growth model, which examines how a stock can be valued through examining the dividend cash flow. The second examines the time value of money, through the assumption that future dividends......

Words: 726 - Pages: 3

The Stock Market Valuation of Research and Development Expenditure

...THE JOURNAL OF FINANCE • VOL. LVI, NO. 6 • DEC. 2001 The Stock Market Valuation of Research and Development Expenditures LOUIS K. C. CHAN, JOSEF LAKONISHOK, and THEODORE SOUGIANNIS* ABSTRACT We examine whether stock prices fully value firms’ intangible assets, specifically research and development ~R&D!. Under current U.S. accounting standards, financial statements do not report intangible assets and R&D spending is expensed. Nonetheless, the average historical stock returns of firms doing R&D matches the returns of firms without R&D. However, the market is apparently too pessimistic about beaten-down R&D-intensive technology stocks’ prospects. Companies with high R&D to equity market value ~which tend to have poor past returns! earn large excess returns. A similar relation exists between advertising and stock returns. R&D intensity is positively associated with return volatility. THE MARKET VALUE OF A F IRM’S SHARES ultimately ref lects the value of all its net assets. When most of the assets are physical, such as plant and equipment, the link between asset values and stock prices is relatively apparent. In modern economies, however, a large part of a firm’s value may ref lect its intangible assets, such as brand names. Under generally accepted U.S. accounting principles, many types of intangible assets are not reported in firms’ financial statements. When a firm has large amounts of such intangibles, the lack of accounting information generally complicates the task......

Words: 13462 - Pages: 54

Stock Market

...International Journal of Business and Management March, 2009 Relationship between Interest Rate and Stock Price: Empirical Evidence from Developed and Developing Countries Md. Mahmudul Alam (Corresponding author) CRM, Marketing Division, Grameenphone Ltd 47 Shantinarar, Dhaka 1217, Bangladesh Tel: 880-1711-503-782 E-mail: rony000@gmail.com Md. Gazi Salah Uddin Department of Business Administration East West University 43, Mohakhali C/A, Dhaka 1212, Bangladesh E-mail: rimsust2002@yahoo.com Abstract Stock exchange and interest rate are two crucial factors of economic growth of a country. The impacts of interest rate on stock exchange provide important implications for monitory policy, risk management practices, financial securities valuation and government policy towards financial markets. This study seeks evidence supporting the existence of share market efficiency based on the monthly data from January 1988 to March 2003 and also shows empirical relationship between stock index and interest rate for fifteen developed and developing countries- Australia, Bangladesh, Canada, Chile, Colombia, Germany, Italy, Jamaica, Japan, Malaysia, Mexico, Philippine, S. Africa, Spain, and Venezuela. Stationarity of market return is tested and found none of this stock market follows random walk model, means not efficient in weak form. To investigate the reasons of market inefficiency, relationship between share price and interest rate, and changes of share price and changes of......

Words: 5903 - Pages: 24

Stock Market

...STOCK MARKET I. Defination. 1. Securities. Stock is evidence confirming the rights and legitimate interests of the owner of the property or the capital of the issuer. Securities are shown in the form of certificates, book entries or electronic data. Types of securities including: stocks, bonds, certificates of investment funds, derivative securities… Securities may be represented by a certificate or, more typically, "non-certificated", that is in electronic or "book entry" only form. Certificates may be bearer, meaning they entitle the holder to rights under the security merely by holding the security, or registered, meaning they entitle the holder to rights only if he or she appears on a security register maintained by the issuer or an intermediary. They include shares of corporate stock or mutual funds, bonds issued by corporations or governmental agencies, stock options or other options, limited partnership units, and various other formal investment instruments that are negotiable and fungible. 2. The securities market ? In its actual form, the securities market is the only place where the exchanges, sale or transfer of securities; thereby changing the stock holders. II. The structure and operating principle of the securities market. 1. The structure a.        Primary market Primary market is the place where the first sale of newly issued securities. The primary market is also known as first market or market issue. Function of primary market: This is the......

Words: 2426 - Pages: 10

Stock Markets

...A project report on STUDY OF DERIVATIVES IN INDIAN STOCK MARKET PERIOD (2009-2012) Submitted to _______________________________________________________ __________________________________________________________ Nashik In partial fulfillment of the Requirement of the award of the degree Of Master of Business Administration (MBA-Finance) By: __________________________________________________ Under The Guidance of Through The Coordinator Study Centre Code: _________ CERTIFICATE This is to certify that the project report entitled on “STUDY OF DERIVATIVES IN INDIAN STOCK MARKET PERIOD (2009-2012)” for the Academic Year 2010-2012 Submitted to the School of Commerce and Management, Yashwantrao Chavan Maharashtra Open University, Nashik in partial fulfillment of the requirement for the award of Degree of Master of Business Administration (MBA) is original work carried out by __________________________________________________ with PRN-2010017002887675 under my guidance. The matter embodied in this project is genuine work done by the student and has not been submitted to this University or any other University/Institute for the partial fulfillment of the required study. Date: Place: DECLARATION I, __________________________________________________, the student of MBA-Finance, completed project on “STUDY OF DERIVATIVES IN INDIAN STOCK MARKET” PERIOD (2009-2012), for the Academic Year 2010-2012. The......

Words: 906 - Pages: 4

Stock Market

...Introduction to Stock Exchanges ------------------------------------------------- Meaning, purpose, working of stock exchanges in India; various terms used in stock exchanges, trading in stock exchanges, clearing and settlement, rolling settlement, online trading, internet trading, market indices, types of public issue Which is benchmark stock market index of India? How many securities are there in Nifty Index? How many securities are there in Sensex? Which index will have high volatility Nifty or BSE Midcap? What do you mean by primary market? ------------------------------------------------- What do you mean by secondary market? What do you mean by stock split? What do you mean by Bonus Issue? What do you mean by Buy Back? What do you mean by Right issue of shares? What are ADR’s? ------------------------------------------------- What is the difference in between IPO and FPO? Risk-Return analysis Risk meaning and Measurement – Types of Risk – Systematic, Unsystematic risk, Beta Coefficient, Alpha, CAPM theory etc. What is return? Expected rate of Return, computation formulae. Case studies on risk-return using standard deviation, variance, probability and other statistical tools. ------------------------------------------------- What is beta? ------------------------------------------------- What is cost of equity? ------------------------------------------------- What is......

Words: 1304 - Pages: 6

Stock Market

...Introduction: The capital market is the engine of growth for an economy, and performs a crucial role in acting as an intermediary between savers and companies seeking additional financing for business expansion. Stock market is part & parcel of capital market. Contribution of any stock exchange generally leads to economic growth by increasing the funds to finance industry and other enterprise. Stock Exchange is an autonomous body formed by shareholders/members. It can take various decisions independently. The objective of Stock Exchange is to provide a market place along with facilities for bringing together the buyers and sellers of securities, promote just and equitable principles of trade, protect the interest of the investors. 1.2 Importance of the study Trading system is one of the most important functions of stock market operation. This report tries to find out the trading system of Dhaka stock exchange. Stock market is an essential part of capital market. Trading has now become automated, led by the Dhaka Stock Exchange through the central depository. In the present automated trading environment, bids/offers, depth, and required broker particulars are all recorded and can be retrieved for future reference. 1.3 Objectives of the study: The prime objective of the study is to study and evaluate the trading system of DSE. In this regard the specific relevant objectives of study are as follows: • To examine the trading system of DSE. • To know growth, development,......

Words: 16973 - Pages: 68

Stock Market

...What Is Stock Market?? A stock market or equity market is the aggregation of buyers and sellers (a loose network of economic transactions, not a physical facility or discrete entity) of stocks (also called shares); these may include securities listed on a stock exchange as well as those only traded privately. What Is Stock Exchange?? A stock exchange is a place or organization by which stock traders (people and companies) can trade stocks. Companies may want to get their stock listed on a stock exchange. Other stocks may be traded "over the counter", that is, through a dealer. A large company will usually have its stock listed on many exchanges across the world.[4] Exchanges may also cover other types of security such as fixed interest securities or indeed derivatives. The Indian Securities Contracts (Regulation) Act of 1956, defines Stock Exchange as, "An association, organization or body of individuals, whether incorporated or not, established for the purpose of assisting, regulating and controlling business in buying, selling and dealing in securities." Difference Of Stock Market And Stock Exchange The stock market represents the companies that list equity shares for public investors to buy and sell. Stock exchanges are the infrastructure that facilitate the trading of those equity securities, or stocks. Without a stock exchange, companies would have no formal mechanism on which to list shares, and without a stock market, exchanges would have no reason to exist.......

Words: 2518 - Pages: 11

Stock Market

...highly appreciated by me. At first, I would like to thank my academic supervisor Afsana Akhter – Senior Lecturer, BBS, BRAC University – for guiding me and for giving me the opportunity to initiate this report. More specifically, I would like to thank her for imparting her time and wisdom. I want to thank all the officials of Dhaka Bank Limited that were involved. I would especially like to thank Zahedul Matin (AVP), Mehreen Islam (AVP) and ATM Obaidullah (SO) of Uttara Branch for giving me time and sharing their thoughts and insights regarding their credit strategies and their bank as a whole. I would like to thank them for giving me the required information to commence this report and for providing the permission to do the required research work. I also would like to give my gratitude to a very important person who has made it all happen for me at Dhaka Bank Limited - Mr. Khondker Fazle Rashid (Managing Director). Finally, I would like to thank my parents and my sisters whose influence and inspiration has enabled me to complete this report. 3 Table of Contents Executive Summary…………………………………………………………………..….6 Prefatory……………………………………………………………..............................................7 History of Banking……………………...…………………………………………………8 History of Private Banks in Bangladesh............................................................................10 Current Structure of Banks in Bangladesh……………………………………………….12 Bangladesh Economy......

Words: 20630 - Pages: 83

An Research of the Seasonalities in the Pakistan’s Stock Market: Monday, January and the Ramadan Effect .

...An research of the seasonalities in the Pakistan’s Stock Market: Monday, January and the Ramadan Effect . Hanan Abdul Razaq 10th March 2009 Acknowledgements I am indebted to my dissertation lecturer for his help and guidance throughout the project. I would also like to thank my family and friends for their unconditional support and understanding throughout the year specially during the crucial times when my head Was down but they gave me that extra strength and support to push forward and Complete this project on time. Abstract In recent years, we have observed an increase in interest from both individuals’ institutions and investors in emerging markets. It’s important for the investors to know whether the market is efficient, inefficient or neutral. This study wishes to document the Pakistani market and their Stock Exchange by looking at the existence of Calendar Anomalies such Monday effect and the January effect. Secondly this study investigates the presence of the so-called Moving Calendar anomaly, the “Ramadan Effect”. The following three indices are used: KSE-100, LSE-25 and ISE-10. An OLS regression and a GARCH (1,1) methodology will be used for the testing daily, weekly and monthly returns. The findings of this study shows the existence of Monday effect in ISE-10 index using...

Words: 21674 - Pages: 87

Stock Market

...Section: Investing STOCKS & MARKETS Failure by regulators and exchanges to pinpoint what caused wild equities swings on May 6 might sap investor confidence in the stock market As if individual investors lacked reasons to mistrust the stock market, along came May 6's gut-wrenching, 9.2 percent drop in the Dow Jones industrial average. The rapid stock plunge — followed by an equally quick, partial rebound in which the Dow regained nearly half its losses — surprised retail investors. Days later, they are trying to digest the realization that the market action during the so-called "flash crash" has bewildered the pros, too. "I still haven't heard a satisfactory answer as to what happened and what could be done about it," said Frank C. Boucher, who heads a financial planning firm in Reston, Va., on Monday, four days after the market's drop. The U.S. Securities & Exchange Commission, charged with regulating the stock market, has offered no explanation. SEC Chairman Mary Schapiro met with the heads of six major exchanges on May 10. According to an SEC statement, a main part of the agenda was "discuss[ing] the causes of Thursday's market events [and] the potential contributing factors." A U.S. House of Representatives subcommittee is expected to examine the reasons for the stock plunge at a hearing on May 11. Among possible causes, media analysts and traders have cited erroneous trades, currency spikes, market regulations, and high-frequency, computerized trading. no "single...

Words: 896 - Pages: 4

Stock Market

...Stock Market Assignment The stock market plays an important role in businesses today. Becoming an investor proved how important it is to understand the stock market. This assignment gave me the opportunity to research and invest in different companies and to learn about the stock market. I also had the opportunity to watch the S&P 500, NYSE, and the NASDAQ, and reflect on market changes and challenges. When choosing stocks to invest in, I was looking to create a diverse portfolio by choosing a variety of industries, price ranges, well known companies and some that were new to me. I visited their websites, read mission statements, and reviewed past performance, learning as much as I could about each company before investing. I viewed the price graphs using ClearStation when looking for companies to invest in. I was looking for companies who have had a gradual but consistent increase in stock price over the past three to six months. I was not willing to invest in a company who had extreme jumps in price. Overall I invested almost $200,000 in twelve different companies. Coke, Hertz, Best Buy, Crocs, Toro, and Bud were all brands I invested in because they were well known to me. These companies or products have been around for years and have a long standing relationship with the consumers. I was able to use the website ClearStation to view past stock market performance before investing. One of the things I was looking for in the mission statement or website......

Words: 1562 - Pages: 7