Paper Contents
Abstract
This study examines the complex factors that determine investor behavior in stock markets, with a focus on the contributions of demographic characteristics, psychological dimensions, financial literacy, and market dynamics. Through an extensive literature review, we analyze how these elements interact to shape investment decisions. Our results indicate that demographic factors, such as age, income, and education, have significant effects on risk tolerance and investment choices. Psychological biases, including overconfidence and herding behavior, further shape investor behavior. Financial literacy plays a crucial role in determining investor behavior, which can improve the decision-making process and encourage participation in the market. External market factors and macroeconomic variables also play a role in determining investor attitude and behavior. These factors are therefore crucial to understanding in developing strategies that promote informed investment decisions and improve market efficiency.
Copyright
Copyright © 2025 Lakshmi P. This is an open access article distributed under the Creative Commons Attribution License.
