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There is agreement among finance scholars that reducing the disposition effect is beneficial to investors. What is less agreed upon is how to achieve this
There is agreement among finance scholars that reducing the disposition effect is beneficial to investors. What is less agreed upon is how to achieve this reduction. Various experimental studies have suggested various ways of achieving this. a) Which of the following do you think could be an effective means for reducing the disposition effect? (1) Banning short sales. (2) Reducing frequency of trading on Fridays. (3) Providing less information on screen about the purchase price. (4) Eliminating market makers. (5) Providing more on screen information about small cap equities. b) Explain and justify your
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