[in about 100 words total!] On 4/13/2022, a business news article reported that millions of individual investors bought the stocks of Naver and Kakao over the past 12 months while the two big ICT stocks have been going down. See the price charts below. Moreover, since the beginning of 2022, individual investors spent KRW 1.4 trillion and KRW 1.25 trillion to buy Naver and Kakao, respectively. In contrast, institutional investors (domestic and foreign) sold KRW 1.46 trillion and KRW 1.26 trillion of Naver stocks and Kakao stocks over the same period. The articles title said We cannot dilute the purchase price any more individual investors are trapped by Naver and Kakao stocks.

ARTICLE : https://biz.chosun.com/stock/stock_general/2022/04/13/MMBNYEW6F5DHHEN2QUNTJLYE JY/

[for just in case, the Korean article. No English version is available, but no need to read these at all anyway.]

[1] State the key concept in behavioral finance that best explains what individual investors are suffering in the article.

[2] Explain how the concept you stated in [1] is different from the expected utility theory of neoclassical economics.

[3] How would you create a FinTech service to help the individual investors in this kind of situation? Any potential risk in your service? [Hint: There is no perfect answer here, but try to be specific]

Kakao Corp + 96,100 +300 (+0.31%) Naver Corp . 313,000 +2,500 (+0.81%) 160,168 452k 150,000 425k 140,000 130,000 40Ok S 120,000 375k 110,000 350k 100000 96,100.00 90,000 325 313k | Investing.com - Investing.com 50. Om 7.50m 5.00 2.50m 25.0 Int:l:nailleultimall.iranian.llnl.alaila Oct Nov Oct | May 2022 Nov | May Feb 2022 Apr Apr Feb 18/7/2021 4/7/2021