Investors’ Perception of the Factors Influencing the Stock Selection Decision
15 Pages Posted: 29 Mar 2011
Date Written: March 24, 2011
Abstract
The globalization of financial markets has been increasing the size of the community of retail investors’ over the past two decades by providing a wide variety of market and investment options. Hence, it makes their investment decisions process more complex. The market conditions can be influenced by both fundamental factors of the company and external factors such as social, political, economic, regulatory, technological, environmental and legal (SPERTEL) that have an influence on the values of equity shares. The main objective of the study is to analyze the investors’ perception of Social, Political, Economical, Regulatory, Technological, Environmental and Legal (SPERTEL) risks on the value of equity shares in the market. It is to be noted that except for the social factors between married and unmarried investors, political, regulatory and legal factors for age and occupation, all other factors seemed to be insignificant.
Keywords: Investor, Globalization, Perception, Investment, SPERTEL
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