32 Pages Posted: 10 Jul 2000
Date Written: February 2000
A unique data set allows us to monitor the buys, sells, and holds of individuals and institutions in the Finnish stock market on a daily basis. With this data set, we employ Logit regressions to identify the determinants of buying and selling activity over a two-year period. We find evidence that investors are reluctant to realize losses, that they engage in tax-loss selling activity, and that past returns and historical price patterns, such as being at a monthly high or low, affect trading. There also is modest evidence that life cycle trading plays a role in the pattern of buys and sells.
JEL Classification: G12
Suggested Citation: Suggested Citation
Grinblatt, Mark and Keloharju, Matti, What Makes Investors Trade? (February 2000). Yale ICF Working Paper No. 00-02; Yale SOM Working Paper No. ICF 00-02. Available at SSRN: https://ssrn.com/abstract=228801 or http://dx.doi.org/10.2139/ssrn.228801