Research on Young Investors’ Behaviors

Taking the Gamestop Short Squeeze as an Example

DOI

10.2991/aebmr.k.220405.145How to use a DOI?

Keywords

Young investors; Gamestop; Behavioral finance; Short squeeze

Abstract

Young investors often demonstrate irrational behavior in the finance market, which causes losses to themselves. Previous studies have identified several factors influencing investors’ decisions. However, these factors are not able to explain the behavior of young investors. This paper will take the Gamestop short squeeze as the case to analyze the underlying factors of young investors’ behavior. This case study will address the question on their illogical decisions through two main categories: internal factors and external factors. The result shows that it was a combination of social media, online trading platforms and investors’ sentiments that contributed to influencing young investors’ decisions. The result also presents advice for young investors and regulators to better avoid illogical decisions of investors that would prevent incidents like the Gamestop short squeeze from happening in the future. This research helps explain young investors’ behaviors and explores new factors influencing their investment decisions. It provides a unique insight into what needs to be improved for both investors and regulators.

Copyright

© 2022 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article distributed under the CC BY-NC 4.0 license.

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TY  - CONF
AU  - Siteng Wu
PY  - 2022
DA  - 2022/04/29
TI  - Research on Young Investors’ Behaviors
BT  - Proceedings of the 2022 7th International Conference on Social Sciences and Economic Development (ICSSED 2022)
PB  - Atlantis Press
SP  - 865
EP  - 869
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.220405.145
DO  - 10.2991/aebmr.k.220405.145
ID  - Wu2022
ER  -