Work detail

Effect of emotional behavior on the efficiency of securities markets

Author: Bc. Petr Málek
Year: 2009 - summer
Leaders: prof. PhDr. Petr Teplý Ph.D.
Consultants:
Work type: Bachelors
Language: English
Pages: 70
Awards and prizes:
Link:
Abstract: This bachelor’s thesis is about the efficiency of securities markets, specifically about the assumption that all investors and speculators behave rationally. It investigates what conditions need to be met for a price movement to occur, and what effect it has on the psyche of investors and speculators. Furthermore, it states some hypotheses which try to explain how psychology and emotions affect the behavior of the other investors and speculators, and therefore also market price movement. To support these hypotheses, the work gathered several examples of specific market situations where emotional behavior of the market participants was present and where neither the assumptions, nor the expected outcomes of the efficient market hypothesis really happened.

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