Aiming For Jackpot In The Stock Market

Yosuke Kakinuma

Informasi Dasar

96 kali
24.10.597
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Case Studies
Tel-U Gedung Manterawu Lantai 5 : Rak 8a
Tel-U Purwokerto : Rak 4

This case illustrates a case when investors become risk-seeking and how the prospect theory explains the investors’ risk appetite. Energy Earth PCL is a coal importer and distributor incorporated in Thailand. Its shares had been suspended for trading before the Stock Exchange of Thailand allowed temporary trading in July 2019. A series of unfavorable events leading up to the temporary trading period suggest that the company’s financial health was severely distressed. Its book value was presumably negative and its going concern was threatened. However, investors still bought the shares with the hope of hitting the jackpot. The case presents an example of the psychological aspects of humans when investing in a stock market. With an application of the prospect theory, irrational risk-seeking behavior explains the motivation to invest in risky stocks.

Subjek

STOCK
 

Katalog

Aiming For Jackpot In The Stock Market
ISSN: 2045-0621
8p.: pdf file.; 345 KB
English

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Pengarang

Yosuke Kakinuma
Perorangan
 
 

Penerbit

Emerald
New York
2021

Koleksi

Kompetensi

 

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