Within trading there are a few implicitly stated rules – perhaps first and foremost of these is the acceptance of risk for the opportunity to profit. The balancing act between risk and reward has over the decades been fertile ground for academics to traders. Academics seek a mythical middle ground that defines an appropriate balance…
I recently read Will Storr’s excellent book ‘The Science of Storytelling’[i]; which is an exploration of how our brains process stories and why they are such a fundamental component of human experience. Whilst it is primarily designed as an aid for writers seeking to better craft their narratives; for me, it also served to underscore…
We test the hypothesis that retail investors’ attraction to lottery stocks induces overvaluation, and is amplified by high attention and social interactions. The lottery premium (negative abnormal returns) is stronger for high-retail-ownership stocks—especially those that also have high analyst coverage, high latest absolute earnings surprises, or extreme recent positive returns. The premium is also larger…
Harold Eddleston, a seventy-seven-year-old from Greater Manchester, was still reeling from a cancer diagnosis he had been given that week when, on a Saturday morning in February, 1998, he received the worst possible news. He would have to face the future alone: his beloved wife had died unexpectedly, from a heart attack. Eddleston’s daughter, concerned…
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