سیاوش وکیلی

"Overreaction is one of the most visible anomalies in the capital market, which has devastating consequences, including market inefficiency," said one capital market expert.

Tehran, March. 01(SENA)-According to the Securities  and Exchange News Agency (Sena) and quoting the YJC, Siavash Vakili, a capital market expert and public relations manager of the stock market, in response to the question why shareholders react to a small event? "Overreaction in financial markets is a well-known behavior. Given the presence of a large number of people who can influence the market and prices with their decisions and behavior, the issue of reaction and induced behavior is of particular importance." Overreaction is one of the visible anomalies in the capital market, which has destructive consequences, including market inefficiency, and will create and induce a false positive and negative atmosphere on the overall trading process.

He added: "Overreaction means performing emotional and quick behaviors based on changes in trading trends and prices, which are not based on a specific analysis and strategy."

"Usually shareholders and newcomers enter the capital market without receiving the necessary training in the field of trading, but shareholders should know that emotional behaviors are due to poor market analysis and will lead to nothing but losses," a lawyer explained.

In the end, he said: "In general, negative news is more attractive to people. This story is not only about the stock market and the economy, but it is the same in all dimensions, whether social or political. If we look at people's behaviors in their daily lives, we will see." , That people do not share the positives with those around them, because they think that good news is obvious, but any negative issue in any field is greatly magnified, this issue of magnification with overreaction and emotional behavior causes damage to I wish this was a one-way street, but the concept of communication is a two-way street, when something happens on the other side, decision makers and policymakers themselves fall into this negative trap and cover each other negatively, and these issues cause The emergence of conditions in the capital market.

Comment

You are replying to: .
4 + 11 =

Latest of Capital Market