The investor in warrants
Victor Mendes ()
CEFAGE-UE Working Papers from University of Evora, CEFAGE-UE (Portugal)
This paper investigates the profile of the individual investor in warrants. It is concluded that the average investor in warrants has a greater level of financial literacy and a greater appetite for risk. It is also concluded that higher experience in stock trading and the investment in foreign stocks facilitate the investment in warrants, which may be a result of learning by trading and of greater competence of investors. However, lower returns from the investment in stocks also favor the investment in warrants, which may mean that (at least some) warrant investors look to this market as an alternative to recover from their minor success with investments in stocks. Finally, overconfidence encourages the investment in warrants and this may lead to unsound decision-making.
Keywords: Warrants; Individual investor; Behavioral finance. (search for similar items in EconPapers)
JEL-codes: D03 G11 G12 (search for similar items in EconPapers)
Pages: 20 pages
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
Downloads: (external link)
http://www.cefage.uevora.pt/en/content/download/30 ... n/1/file/2012_19.pdf
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cfe:wpcefa:2012_19
Access Statistics for this paper
More papers in CEFAGE-UE Working Papers from University of Evora, CEFAGE-UE (Portugal) Contact information at EDIRC.
Bibliographic data for series maintained by Angela Pacheco ().