The Individual Investor and the Future Stock Market
2013 (English)In: European Financial Management Association 2013 Annual Meetings: 2013 "Merton H. Miller" Doctoral Students Seminar / [ed] Professor John Doukas, 2013Conference paper (Refereed)
Individual shareholder investors are generally described in academic literature to act with a short investment horizon, have psychological biases and a typical herding behavior. Previous studies have distinguished between individual and institutional investors, their trading patterns and portfolio performance. This article focus on describing the individual investor over the time period 2004 to 2010, with a special interest in the new investors coming to the stock market during this period. Earlier studies focusing on individuals have mainly been based on either aggregated trading data by brokers and/or surveys, while I base my study on the actual individual holdings from the national central registrar. The database contains ownership information on all the directly owned shares in Sweden (approx.2 million investor portfolios).
This study focus on individuals investing in the stock market for their first time during the latter years. Previous literature has described the individual investor to be declining and aging, which could be interpreted as the end of individual shareholders as stock market investors. If there is a future for the stock market as trading arena for individuals, there needs to be some rejuvenation amongst the shareholders. The study show that although the average shareholder is aging, which indicates that shareholders stick to their shares, there are new younger shareholders still attracted by the stock market. Preliminary results also suggest a decline in the gender imbalance amongst shareholders.
Place, publisher, year, edition, pages
Finance, investors, shareholder
Research subject Business Economics (HGO)
IdentifiersURN: urn:nbn:se:uu:diva-205118OAI: oai:DiVA.org:uu-205118DiVA: diva2:640651
European Financial Management Association 2013 Annual Meetings June 26- 29, 2013 Reading, UK
Early working paper, please do not quote or publish, without permission from the author
[Version, April 2013]2013-08-142013-08-142013-08-14