Psychological Indicator(s) in Stock Activities considering SDGs: The Wealth Maximization Criteria of Investors and Growth of Economy

Authors

  • Muhammad Awais Associate Professor, Department of Economics & Finance, Foundation University School of Science and Technology (FUSST), Pakistan
  • Bushra Zulfiqar Assistant Professor, University Institute of Management Sciences, PMAS, Arid Agriculture University Rawalpindi
  • Rabia Saghir Assistant Professor, Department of Economics & Finance, Foundation University School of Science and Technology (FUSST), Pakistan
  • Asiya Sohail Assistant Professor, Department of Business Administration, Foundation University School of Science and Technology (FUSST), Pakistan
  • Aziz Ur Rehman Rana HOD, Department of Technology & Innovation, Foundation University School of Science and Technology (FUSST), Pakistan

Keywords:

Psychological Indicators, Stock Activities, SDGs, Wealth Maximization, Investors, Economy

Abstract

Objective-Psychological Indicator specifies impetus and drift way, in addition to overbought and overvalued worth echelons and its conforming conceivable mean setbacks. These indicators play an essential role in sustainable development goals via stock market activities. The central objectives of the study are to identify the key psychological cognitive indicators behind the abnormal movements of the market.

Methodology -For this purpose, a Semi-structured scale - developed on a self-basis - (with the help of literature and connoisseur’s meetings) was used after the context and the content validity to get an extensive array of differentiated information.

Results-According to the experts of the market: investors do not always behave rationally, most investors either fall in the category of overconfident investors or status quo investors, usually the Rookies or beginners in the stock markets only have elementary knowledge and basic experience in the investment domain, based on little or no knowledge of rookies it is actually so hard for them to recognize the future prospects of the securities, and not only investors but stock market’s financial analysts can also be subjected to the behavioral biases but on the other hand in order to understand and recognize one’s own behavioral biases and proneness towards those biases investors can rely on financial planners.

Conclusion-The traditional economic theory states that the investor is rational: which is not true in every case and is hard to generalize. Investors must overcome the general predispositions that lead to poor decision-making if they are to become successful in the stock market in the long run. And the investor must learn all about the investment accounts available in the stock market

Downloads

Published

2022-03-31