Stock Markets Investments And Corporate Behavior

"Stock Markets, Investments and Corporate Behavior examines the nature of stock market growth and decline, the function of financial markets, and their implications for commercial companies. Traditionally, finance academics have attempted to understand financial markets and commercial companies as physicists approach their subject matter: with a set of laws in mind that govern the field. But finance is not physics. The academic's approach falsely assumes that financial markets can be understood as systems within which self-interested maximizers behave in logical ways that are coordinated by the invisible hand of the price mechanism. This book demonstrates that finance is more appropriately understood as a field in which investors and finance managers may or may not use rational calculations as the basis of their decision making. This book opens with an effective dismantling of the traditional mathematical approach used to understand and describe markets and corporate financial behavior. In its place, the mathematics of growth and decline is developed anew, while holding to the realization that the decisions of organizations rely on the choices of real people with limited information available to them. The book will appeal to all students who wish to reappraise their knowledge of finance in a thoughtful manner. Specifically, this book is designed to appeal to anyone who wishes to refine their understanding of the nature of stock markets and financial growth, optimal portfolio allocation, option pricing, asset valuation, corporate financial behavior, and what it means to be ethical in our financial institutions."--

In short, the objective of the text is to instill insight in regards to the functioning of markets and corporate behavior, as opposed to algebraic derivations from unrealistic assumptions. Rather than subscribe unthinkingly to an "efficient market hypothesis," at each stage of the development of the text's conceptual framework, we also recognize the reality of market "sentiment" and the fundamental uncertainty that managers face in their decisions.

'Stock-Market Psychology gives an excellent overview of the state-of-the-art literature on this subject in the fields of economics, psychology and finance. . . a comprehensive overview of the behavior of investors in the stock market. As such, this book is valuable for the classroom. . . Stock-Market Psychology provides researchers with numerous ideas for future research and readers with useful and fun tips without taking away our hopes of ever becoming rich from investing in stocks. What more is there to ask from a book?' - Joost M.E. Pennings, Journal of Economic Psychology 'George Goodman (Adam Smith) once wrote, "you can find out who you are by investing in the stock market, but it will be an expensive lesson". It is far smarter and cheaper to read Wärneryd's book instead. At a time when global stock markets are driven by emotions and passions, and are highly volatile, Chapter Six will tell you why, far better than a hundred analysts' reports.' - Shlomo Maital, TIM-Technion Institute of Management and the Samuel Neaman Institute for Advanced Studies in Science and Technology, Israel The rationale behind how people value and trade stocks is of unparalleled interest to governments, companies and other participants in stock markets. The book focuses on the way in which investors process information and form expectations about future gains. It argues that humans fall short of the perfect information processing required by theory, and that their expectations are based on more than just future company earnings.

"Outgrowth and extension of ... [the author's] doctoral dissertation ... University of Pittsburgh." Bibliography: p. 231-233.

A guide to curbing monopoly power in stock markets Engaging and informative, Regulating Competition in Stock Markets skillfully analyzes the impact of the recent global financial crisis on health and happiness, and uses this opportunity to put regulatory systems in perspective. Happiness is lost because of emotional and physical health deterioration resulting from the crisis. Therefore, the authors conclude that financial crisis prevention should be the focus of public policy. This book is the most comprehensive study so far on potential risks to the stock market, especially various forms of market manipulation that lead to mania and eventual crisis. Based on litigation cases from international stock markets, and borrowing multidisciplinary findings in the fields of finance, economics, accounting, media studies, criminology, legal studies, psychology, and medicine, this book is the first to provide thorough micro-level regulatory proposals rooted in financial reality. By focusing on securities trading, they apply antitrust measures to limiting monopolistic power that is used for the manipulation of investors' perception and monopolistic profit. These proposals are quantifiable, adjustable, inexpensive, and can be easily implemented by any securities regulating agency for real-time oversight and daily operations. The recommendations found here are intended to improve the fairness and transparency of the financial markets, thereby perfecting the market competition, protecting investors, stabilizing the market, and preventing crises Explores how avoiding crises can to contribute to a more scientific, health aware, and civilized economic and social development Written by a team of authors who have extensive experience in this dynamic field, including Nobel Laureate Lawrence R. Klein Since the founding of the first, organized stock exchange in Amsterdam 400 years ago, no systematic economic research results on stock markets have been implemented in stock market regulation around the world. Regulating Competition in Stock Markets aims to fill this void.

A definitive guide to the growing field of behavioral finance This reliable resource provides a comprehensive view of behavioral finance and its psychological foundations, as well as its applications to finance. Comprising contributed chapters written by distinguished authors from some of the most influential firms and universities in the world, Behavioral Finance provides a synthesis of the most essential elements of this discipline, including psychological concepts and behavioral biases, the behavioral aspects of asset pricing, asset allocation, and market prices, as well as investor behavior, corporate managerial behavior, and social influences. Uses a structured approach to put behavioral finance in perspective Relies on recent research findings to provide guidance through the maze of theories and concepts Discusses the impact of sub-optimal financial decisions on the efficiency of capital markets, personal wealth, and the performance of corporations Behavioral finance has quickly become part of mainstream finance. If you need to gain a better understanding of this topic, look no further than this book.

Lack of financial knowledge is not only an economic consideration, but also a social concern garnering greater attention from school administrators, governmental agencies and policymakers. This concern highlights the fact that widespread gaps in levels of financial literacy exist, and at risk are those who are least familiar with complex savings and investment vehicles, and with financial planning concepts and their long-term benefits. Today’s complex financial services market offers investors an endless array of products and services to meet individual financial needs, and the degree of choice requires the knowledge to evaluate the options, and the ability to identify those that best suit individual needs and circumstances. This book collates a wealth of expertise and insight, and aims to provide a new generation a higher understanding of the various investment products and services in the marketplace, and to increase the likelihood of attaining a secure financial future. In addition, the material will educate those interested in increasing their aptitude about financial choices, and will assist in gaining a greater understanding of the benefits of saving through securities investments. The content provides knowledge that will empower individuals to make better-informed investment decisions, assist in planning for their future, and will make a contribution to creating a sound lifestyle during working years and through-out retirement. The curriculum focuses on relevant knowledge, and provides ample opportunities for an integrated learning experience. Throughout the program of study, students will not only learn important concepts, but will have ample opportunities through coursework and assignments to apply these concepts to real and simulated practice situations. On the high school and undergraduate levels, this supplemental book shall appropriately pair with courses that include Math Applications in the Real World, Personal Financial Planning, Introduction to Investments, Money and Finance, or Money and Banking. At the graduate level, the book compliments courses which provide analysis of financial instruments, financial markets, or insurance and investment companies. Courses that are commonly offered on the graduate level include Financial Management, Investment Analysis, or Personal Financial Planning. Prerequisites are not required, as these are lower level classes. Many of the modules are commonly taught at most Universities – and several of the classes are required for Business and Finance majors. A few points should be made regarding how the instructional aids contained in this manual can be used. Firstly, a section at the end of the chapter contains questions, self-test problems and case analyses. This Guide provides answers to the questions, problems, and cases. PowerPoint slides are included to aid the pedagogy. We encourage educators to modify the slides in the manner that best fits the course. Instructors can contact the publisher or the author to request supplemental material. Secondly, since there is no single best way to teach a financial literacy course – the optimal class structure will vary with students' backgrounds, the instructors' interests, the number of students, and the fit of the content in the overall curriculum. Volume 1 consists of subject content, commonly used abbreviations, core analysis, exercises, case analyses and an extensive glossary. Future volumes will cover bonds, mutual funds and annuities. We trust readers will find this guide to be a valuable resource for gaining insight and best practices relevant to saving and investment participation. The Author, Clifford D. Wright