Sudden Corrections Influence of Overconfidence Bias on Trading Behavior

We find that an increase in trade volume positively affects stock prices of companies listed in the S&P 500 index. In our headline regression, stock price ... The influences can be categorised as internal or external influences. Internal Influences on share price. Internal influences are the factors that a company ... Apr 8, 2025 ... But over the long term, stock prices will be driven by just a handful of fundamental factors such as earnings growth and changes in valuation. Abstract. Dispersion in investor beliefs and short-selling constraints can lead to stock market bubbles. This paper argues that firms, unlike investors, can ... Jul 1, 2006 ... In the short term, emotions influence market pricing. A simple model explains short-term deviations from fundamentals. Stock prices are driven by a variety of factors, but ultimately the price at any given moment is due to the supply and demand at that point in time in the ... Like many financial assets, share prices rise and fall according to shifts in supply and demand. The concept is simple: If more people want to buy a share than ... Aug 26, 2024 ... In the short term, the stock price is driven by supply and demand, which can be influenced by sentiment, speculation, and hype. Meanwhile, a ... Economic news can be good or bad. However, what has a greater influence on markets is whether the news is better or worse than investors expected. Consider ... Nov 9, 2020 ... And despite the evidence that tweets can influence stock prices, Kurov said it is unlikely that firms or investors can systematically manipulate ...