The effects of price trend and of profit or loss on the tendency to sell stock are examined by the use of questionnaires that simulate a variety of stock market situations. The tendency to sell is weakest when recent price trend is up and strongest when trend is down. Holding trend constant-when compared with a no-gain situation a loss has no impact on selling behavior, whereas a profit markedly increases selling.
All Science Journal Classification (ASJC) codes
- Social Psychology
- Applied Psychology