I provide a synthesis of the Behavioural finance literature over the past two decades. I review
the literature in three parts, namely,(i) empirical and theoretical analyses of patterns in the …

The representative heuristic and overconfidence are cognitive biases that influence the
decisions of the investors in the stock market. Overconfident investors tend to rely on …

We provide an overview of research on the stock trading behavior of individual investors.
This research documents that individual investors (1) underperform standard benchmarks …

Investor sentiment, defined broadly, is a belief about future cash flows and investment risks
that is not justified by the facts at hand. The question is no longer whether investor sentiment …

Using a database of more than 1.85 million retail investor transactions over 1991–1996, we
show that these trades are systematically correlated—that is, individuals buy (or sell) stocks …

Motivated by psychological evidence that attention is a scarce cognitive resource, we model
investors' attention allocation in learning and study the effects of this on asset-price …

We examine whether consumer confidence–as a proxy for individual investor sentiment–
affects expected stock returns internationally in 18 industrialized countries. In line with recent …

This paper investigates the dynamic relation between net individual investor trading and
short‐horizon returns for a large cross‐section of NYSE stocks. The evidence indicates that …

We study the trading of individual investors using transaction data and identifying buyer-or
seller-initiated trades. We document four results:(1) Small trade order imbalance correlates …

We examine the ability of online ticker searches (eg XOM for Exxon Mobil) to forecast
abnormal stock returns and trading volumes. Specifically, we argue that online ticker …