Impact of the Stock Market on Investors

Abstract

This paper highlights the ways that stock market investors react to the fluctuations in stocks whether it be good or bad news for the investor. It discusses the role of different human emotions such as fear, panic, worry, over-confidence and greed play in how stock prices and valuations are shaped. It discusses the different types of investors that are in the market and what their attitude is towards money and investing. There are also different demographics that investors have that can affect their financial literacy and how that impacts the way that they view money. The role of social media, specifically Reddit is also discussed and how social media can influence the investor to behave a certain way and take certain actions within the stock market.