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THE ROLE OF PSYCHOLOGICAL AND SOCIAL FACTORS IN INVESTMENT DECISION-MAKING OF INDIVIDUAL INVESTORS IN THE STOCK MARKET

  • Unique Paper ID: 168088
  • Volume: 11
  • Issue: 4
  • PageNo: 1260-1267
  • Abstract:
  • Investment decision-making is a complex process that involves selecting the best available option from a range of alternatives. It requires thorough evaluation and consideration of multiple factors before arriving at a decision. This study explores the psychological and social factors that influence the investment decisions of individual investors, and examines how these factors jointly affect the decision-making process. Data were collected from 250 randomly selected individual investors trading on the Stock Exchange through a structured questionnaire. Descriptive statistical techniques were employed to analyze the data. The findings of the study reveal that both psychological and social factors significantly impact the decision-making process of individual investors in the stock market. Investors are increasingly aware of the various situations and factors that can influence their ability to make sound investment decisions. The study also highlights differences in how these factors affect male and female investors. For instance, emotions such as anger, fear, and stress, as well as the tendency to follow herd behavior, are found to influence male investors more than females. In contrast, factors like mood and social interactions have a stronger impact on female investors' decision-making processes. Furthermore, experienced investors are more prone to certain biases, such as anger, which may further influence their decisions. These findings underscore the importance of understanding both psychological and social dimensions in the investment decision-making process, particularly in how they differ across gender and experience levels.
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Cite This Article

  • ISSN: 2349-6002
  • Volume: 11
  • Issue: 4
  • PageNo: 1260-1267

THE ROLE OF PSYCHOLOGICAL AND SOCIAL FACTORS IN INVESTMENT DECISION-MAKING OF INDIVIDUAL INVESTORS IN THE STOCK MARKET

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UGC Approved
Journal no 47859

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